Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of 15 years, has an estimated residual value of $14,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31 the end of the fifth year?

Assume that the equipment was sold on April 1 of the sixth year for $105,800.

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.

Depreciation expense-equipment

Accumulated depreciation-equipment

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

Cash

Accumulated Depreciation-equipment

Loss on Sale of Equipment

Equipment