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 Required: (a) What is the annual amount of depreciation for the first three years, assuming the straight-ire method of depreciation is used? (b) What is the book value of the equipment on January 1 Year 4? (c) Assuming that the equipment is sold on January 2, Your 4, for $325,000, fourmalize the entry to record the sale. Reler to the Chart of Accounts for exact wording of account titles (d) Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale. Reder to the Chart of Accounts for exact wording of account titles. ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 112 Accounts Receivable 610 Interest Revenue 620 Gain on Sale of Equipment 114 Interest Receivable EXPENSES 510 Cost of Merchandise Sold 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 121 Equipment 122 Accumulated Depreciation-Equipment 132 Goodwill 133 Patents 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 524 Rent Expense 525 Insurance Expense 531 Repairs and Maintenance Expense 541 Depreciation Expense 543 Depletion Expense 544 Amortization Expense-Patents 591 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable Analysis What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? $60,000.00 Year 1 depreciation expense Year 2 depreciation expense Year 3 depreciation expense $60,000.00 $60,000.00 What is the book value of the equipment on January 1, Year 4? $345,000.00 General Joumal General Journal Joumalize the entry to record the sale on January 2, Year 4. for 325,000. Refer to the Chart of Accounts for exact wording of account titles, PAGE 1 JOURNAL DATE DESCRIPTION POST. REF DEBIT CREDIT 2 5 Journalize the entry to record the sale on January 2, Year 4 for $394.000 instead of $325,000. Refer to the Chart of Accounts for exact wording of account the PAGE 1 Joumalize the entry to record the sale on January 2 Year 4, for $394,000 instead of $325,000. Refer to the Chart of Accounts for exact wording of account titles PIGE JOURNAL DATE DESCRIPTION POSTRE DERET CREDIT