Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $175,750 has an estimated useful life of 18 years, has an estimated residual value of $9,250, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $130,527. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment 88 Accumulated Depreciation Equipment Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Cash Accumulated Depreciation Equipment 1100 LIID Loss on Sale of Equipment Equipment Feedback 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 $481,380 Land and buildings Machinery, equipment, and internal-use software $279,200 361,035 457,311 Other fixed assets related to leases 582,470 438,056 Accumulated depreciation and amortization (611,353) (510,263) 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 book values of the current and preceding years indicates that they increased . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $ which was offset by the additional depreciation expense of $ million taken during the current year. million of additional fixed assets, b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase