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: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 Year 2 Year 3 2. What is the book value of the equipment on January 1, Year 4? 345,000 3. Assuming that the equipment is sold on January 2, Year 4 for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 326,000 Accumulated Depreciation Equipment 180,000 Loss on Sale of Equipment 19,000 Equipment $25,000 4. Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank Cash Accumulated Depreciation Equipment 180,000 Equipment 525,000 Gain on Sale of Equipment 394,000 49,000