Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000.

(1)	What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used?
(2)	What is the book value of the equipment on January 1, Year 4?
(3)	Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
(4)	Assuming that the equipment is sold on January 2, Year 4, for $394,000 instead of $326,000, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.