Equipment acquired on January 6 at a cost of $401,300 has an estimated useful life of 18 years and an estimated residual value of $25,100.

Depreciation straight line method ($401,300 - $25,100) / 18 = $376,200 / 18 = $20,900

The book value on January 1 is $401,300 - $62,700 = $338,600

3. Assuming that the equipment had been sold on January 3 of Year 4 for $342,000 instead of $315,000, journalize the entry to record the sale.