Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500. a. What was the annual amount of depreciation for the years 2007, 2008, and 2009, using the straight-line method of depreciation? Year Depreciation expense 2007 $ 29,250 2008 $ 2009 $ b. What was the book value of the equipment on January 1, 2010? $ c. Assuming that the equipment was sold on January 4, 2010, for $168,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Account Debit Credit Cash Accumulated depre. Loss on disposal fixed assets Equipment d. Assuming that the equipment had been sold on January 4, 2010, for $180,000 instead of $168,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Account Debit Credit CAsh Acc. depreciation-Equipment Equipment Gain on sale of equipment