Disposal of fixed asset

Equipment acquired on January 6 at a cost of $358,800 has an estimated useful life of 10 years and an estimated residual value of $46,800.

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

Year	Depreciation Expense
Year 1	fill in the blank 1 of 3 $
Year 2	fill in the blank 2 of 3 $
Year 3	fill in the blank 3 of 3 $

b. What was the book value of the equipment on January 1 of Year 4? fill in the blank 1 of 1 $

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c. Assuming that the equipment was sold on January 3 of Year 4 for $251,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
January 3	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment
	Accounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment
	Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment
	Accumulated Depreciation-EquipmentCashEquipmentGain on Sale of EquipmentLoss on Sale of Equipment

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d. Assuming that the equipment had been sold on January 3 of Year 4 for $270,500 instead of $251,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
January 3	CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment
	Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of Equipment