Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 Depreciation Expense 17,500 17,500 17,500 V b. What was the book value of the equipment on January 1 of Year 4? 305,000 X Feedback Check My Work Year 4 Cash Jan. 3 c. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Accumulated Depreciation-Equipment 100