Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $364,300 has an estimated useful life of 8 years and an estimated residual value of $47,500.

a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation?

Year	Depreciation Expense
Year 1
Year 2
Year 3

b. What was the book value of the equipment on January 1 of Year 4?

c. Assuming that the equipment was sold on January 3 of Year 4 for $233,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

d. Assuming that the equipment had been sold on January 3 of Year 4 for $250,400 instead of $233,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.