Depreciation by two methods; sale of fixed asset Starting questions ournal New tire retreading equipment, acquired at a cost of $110,000 at the beginning of a fiscal year, has an estimated useful liMe of four years and an estimated residual value of $7,500. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year On the basis of the data presented to the manager, the double-declining-balance method was selected In the first weok of the fourth year, the equipment was sold for $18,000 Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year and the book yalue of the equipment at the end of each year by (a) the stralohe line method and (b) ne double dectining-baince method 2. On January 1, journalize the entry to record the sale. Reter to the Chart of Accounts tor exact wording of account sities 3. On January 1, journalize the entry to record the sale, assuming that the equipment soild for $10,500 instead of $18,000. Reter to the Chart of Accounts for exact wording of account titles