Disposal of fixed asset Equipment acquired on January 6 at a cost of $425,000 has an estimated useful life of 20 years and an estimated residual value of $35,000. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? b. What was the book value of the equipment on January 1 of Year 4 ? Feedbsck Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $360,000, journalize the entry to record the sale. If an-amount box does not require an entry, leave it blank. c. Assuming that the equipment was sold on January 3 of Year 4 for $360,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Feedback Check My Work Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss. d. Assuming that the equipment was sold on January 3 of Year 4 for $370,000 instead of $360,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Disposal of fixed asset Equipment acquired on January 6 at a cost of $425,000 has an estimated useful life of 20 years and an estimated residual value of $35,000. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? b. What was the book value of the equipment on January 1 of Year 4 ? Feedbsck Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $360,000, journalize the entry to record the sale. If an-amount box does not require an entry, leave it blank. c. Assuming that the equipment was sold on January 3 of Year 4 for $360,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Feedback Check My Work Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss. d. Assuming that the equipment was sold on January 3 of Year 4 for $370,000 instead of $360,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank