Equipment acquired on January 9, 2013, at a cost of $479,000, has an estimated useful life of 15 years, an estimated residual value of $47,900, and is depreciated by the straight-line method. a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar. 335,300 For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. b1. Assuming that the equipment was sold on July 1, 2018, for $191,600, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date. Balance Sheet Assets Liabilities Stockholders' Equity Equipment Accumulated depreciation - equipment No effect + Retained earnings July 1. 191,600 Statement of Cash Flows 14,370 No effect 0 Income Statement Depreciation expense 14,370 b2. Assuming that the equipment was sold on July 1, 2018, for $191,600, illustrate the effects on the accounts and financial statement of the sale of the equipment. Balance Sheet Assets Liabilities + Stockholders' Equity Cash + Equipment Accumulated depreciation - equipment No effect + Retained earnings July 1. 191,600 479,000 143,700 17,000 Statement of Cash Flows Investing 191,600 Check My Work 1 more Check My Work uses remaining Income Statement Retained earnings Previous Next