Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000.

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

Year	Depreciation Expense
Year 1	$
Year 2	$
Year 3	$

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 $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3

d. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead of $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3