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? Check My Work c. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, Joumalize the entry to record the sale. If an amount box does not require an entry, trave it blank Year 4 Cash Jan. 3 Accumulated Depreciation Equipment 1110 1110 Loss on Sale of Equipment Equipment 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 Cash Jan. 3 Accumulated Depreciation Equipment Equipment III Gain on Sale of Equipment