Docker Company purchased equipment on July 19, 2016, for $400,000. The estimated useful life is 8 years and residual value is $60,000. On April 7, 2022, they sold the equipment for $100,000. Docker rounds depreciation to the nearest month.

Required

Provide all journal entries necessary for the sale of the equipment under the following conditions:

1. Docker uses straight line depreciation.

2. Docker uses double declining balance depreciation.