Equipment acquired on January $8$ at a cost of $$165,730$ has an estimated useful life of $17$ years, has an estimated residual value of $$8,650,$ and is depreciated by the straight$-$line method.

Required:

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 $$120,655,$ 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar.

CHART OF ACCOUNTSGeneral Ledger

ASSETS

$110$ Cash

$111$ Petty Cash

$112$ Accounts Receivable

$114$ Interest Receivable

$115$ Notes Receivable

$116$ Merchandise Inventory

$117$ Supplies

$119$ Prepaid Insurance

$120$ Land

$123$ Delivery Truck

$124$ Accumulated Depreciation$-$Delivery Truck

$125$ Equipment

$126$ Accumulated Depreciation$-$Equipment

$130$ Mineral Rights

$131$ Accumulated Depletion

$132$ Goodwill

$133$ Patents

LIABILITIES

$210$ Accounts Payable

$211$ Salaries Payable

$213$ Sales Tax Payable

$214$ Interest Payable

$215$ Notes Payable

EQUITY

$310$ Owner's Capital

$311$ Owner's Drawing

REVENUE

$410$ Sales

$610$ Interest Revenue

$620$ Gain on Sale of Delivery Truck

$621$ Gain on Sale of Equipment

EXPENSES

$510$ Cost of Merchandise Sold

$520$ Salaries Expense

$521$ Advertising Expense

$522$ Depreciation Expense$-$Delivery Truck

$523$ Delivery Expense

$524$ Repairs and Maintenance Expense

$529$ Selling Expenses

$531$ Rent Expense

$532$ Depreciation Expense$-$Equipment

$533$ Depletion Expense

$534$ Amortization Expense$-$Patents

$535$ Insurance Expense

$536$ Supplies Expense

$539$ Miscellaneous Expense

$710$ Interest Expense

$720$ Loss on Sale of Delivery Truck

$721$ Loss on Sale of Equipment

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 $$120,655,$ journalize the entries to record the following $($Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answer to the nearest whole dollar.$)$:

$1.$ Depreciation for the three months until the sale date$\backslash$table$[[$Journal$],[$JOURNAL$],[,$DATE,DESCRIPTION,$\backslash$table$[[$POST$.],[$REF$.]],$DEBIT,CREDIT,$\backslash$table$[[$Arrn$],[$ASSETS$]],\backslash$table$[[$INITINIC$.$ EOIIATIONI$],[$LIABILITIES EQUITY$]]],[1],[2,,,,,,,]]$

The sale of the equipment

PAGE $2$

JOURNAL

DATE

DESCRIPTION

POST.

DEBIT

CREDIT

ASSETS

LIABILITIES EQUITY

$1$

$2$

$3$

$4$