Disposal of fixed asset Equipment acquired on January 6 at a cost of $187,700 has an estimated useful life of 8 years and an estimated residual value of $24,500. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 Depreciation Expense 20,400 V 20,400 20,400 V b. What was the book value of the equipment on January 1 of Year 42 126,500 V Feedback Check My Work c. Assuming that the equipment was sold on January 3 of Year 4 for $120,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3 Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment 120,200 61,200 6,300 V 187,700 Feedback Check My Work d. Assuming that the equipment had been sold on January 3 of Year 4 for $129,000 instead of $120,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it: