Equipment acquired on January 5 at a cost of $127,570, has an estimated useful life of 13 years, has an estimated residual value of $8,750, and is depreciated by the straight-line method.

a. What was the book value of the equipment on December 31 the end of the fourth year?

b. Assuming that the equipment was sold on April 1 of the fifth year for 83,470.

1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nearest whole dollar if required.

	Accounts Payable, Accumulated Depreciation-Equipment, Cash, Depreciation Expense-Equipment, Equipment, Equipment Expense
	Accounts Payable, Accumulated Depreciation-Equipment, Cash, Depreciation Expense-Equipment, Equipment, Equipment Expense

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.

	Accounts Payable, Cash, Depreciation Expense-Equipment, Equipment, Gain on Sale of Equipment
	Accounts Payable, Accumulated Depreciation-Equipment, Depreciation Expense-Equipment, Equipment, Gain on Sale of Equipment
	Accounts Receivable, Depreciation Expense-Equipment, Equipment, Loss on Sale of Equipment, Depreciation Payable-Equipment
	Accumulated Depreciation-Equipment, Equipment, Equipment Expense, Gain on Sale of Equipment, Loss on Sale of Equipment