Equipment acquired on January 8 at a cost of $100,870, has an estimated useful life of 12 years, has an estimated residual value of $9,550, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for $61,657, journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment. Refer to the Chart of Accounts for exact wording of account titles. A. What was the book value of the equipment at December 31 the end of the fourth year? $70,430 V Points: 1/1 Feedback Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. B. Assuming that the equipment was sold on April 1 of the fifth year for $61,657, journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles): 1. Depreciation for the three months until the sale date How does grading work? PAGE 1 JOURNAL Score: 21/25 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DATE DESCRIPTION Apr. 1 Depreciation Expense-Equipment 1,902.50 Accumulated Depreciation-Equipment 1,902.50 2. The sale of the equipment How does grading work? PAGE 2 JOURNAL Score: 45/49 ACCOUNTING EQUATION DESCRIPTION POST. REF. CREDIT ASSETS LIABILITIES EQUITY DATE Apr. 1 Cash DEBIT 54,047.00 Accumulated Depreciation-Equipment 39,953.00 Loss on Sale of Equipment 6,870.00 Equipment 100,870.000