Equipment acquired on January 8 at a cost of $122,440 has an estimated useful life of 14 years, has an estimated residual value of $8,900, 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? $fill in the blank 37e4b605bf93fab_1

b. Assume that the equipment was sold on April 1 of the fifth year for $81,897.

1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required.

	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentEquipment Expense	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentEquipment Expense	- Select -	- Select -

2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts ReceivableDepreciation Expense-EquipmentDepreciation Payable-EquipmentEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentEquipmentEquipment ExpenseGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -