Disposal of fuxed asset. Equipment acquired on January 6 at a cost of $251,200 has an estimated useful ife of 7 years and an estimated residual value of $32,800. 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? s Fetitack roleavy Wor 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 balancen in the account grom each year of the asset's life. d. Assuming that the equipment had been sold on January 3 of Year 4 for $160,800 instead of $149,700, journalize the entry to record the sale. If an amount bax does not cequire an entry, leave it blank