Equipment acquired on January 6 at a cost of $202,900, has an estimated useful life of 7 years and an estimated residual value of $26,500.

a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

b. What was the book value of the equipment on January 1 of Year 4?

c. Assuming that the equipment was sold on January 3 of Year 4 for $120,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

d. Assuming that the equipment had been sold on January 3 of Year 4 for $129,800 instead of $120,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.