Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $209,800 has an estimated useful life of 8 years and an estimated residual value of $27,400. 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 $134,300, 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 $144,200 instead of $134,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $765,000 $443,700 Machinery, equipment, and internal-use software 726,750 573,750 Other fixed assets related to leases 925,650 696,150 Accumulated depreciation and amortization (971,550) (810,900) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ million of additional fixed assets, which was offset by the A comparison of the book values of the current and preceding years indicates that they additional depreciation expense of s million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year