Equipment acquired on January 6, 2013, at a cost of $417,390, has an estimated useful life of 17 years and an estimated residual value of $68,805.

	Required:
A.	What was the annual amount of depreciation for the years 2013, 2014, and 2015 using the straight-line method of depreciation? 2013 $____________ 2014 $_____________ 2015 $____________
B.	What was the book value of the equipment on January 1, 2016? $____________________

C.	Assuming that the equipment was sold on January 3, 2016, for $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4

D. Assuming that the equipment had been sold on January 3, 2016, for $368,885 instead of $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4