Equipment was purchased on January $1,2020$ for $$70,000.$ The asset is expected to last for four years, at which time the estimated residual value will be $$12,000.$

Required

a$)$ Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight$-$line depreciation.

Do not enter dollar signs or commas in the input boxes.

Round all dollar figure answers to the nearest whole number.

Year Cost of Long$-$Term Asset Depreciation Expense Accumulated Depreciation Net Book Value

$2020$ $$70,000$ $Answer $1$ Question $4$

$14500$

$Answer $2$ Question $4$

$14500$

$Answer $3$ Question $4$

$55500$

$2021$ $$70,000$ $Answer $4$ Question $4$

$14500$

$Answer $5$ Question $4$

$29000$

$Answer $6$ Question $4$

$41000$

$2022$ $$70,000$ $Answer $7$ Question $4$

$14500$

$Answer $8$ Question $4$

$43500$

$Answer $9$ Question $4$

$26500$

$2023$ $$70,000$ $Answer $10$ Question $4$

$14500$

$Answer $11$ Question $4$

$58000$

$Answer $12$ Question $4$

$12000$

b$)$ The asset was sold for $$14,000$ on the first day of $2024.$ Prepare the journal entry to record the sale.

Enter all debit accounts in alphabetical order.

Enter all credit accounts in alphabetical order.

Date Account Title and Explanation Debit Credit

Jan $1$ Answer $13$ Question $4$

Accumulated Depreciation

Answer $14$ Question $4$

$58000$

Answer $15$ Question $4$

Cash

Answer $16$ Question $4$

$14000$

Answer $17$ Question $4$

Equipment

Answer $18$ Question $4$

$70000$

Answer $19$ Question $4$

Gain on Disposal of Asset

Answer $20$ Question $4$

$2000$

To record sale of equipment for cash

c$)$ Using the same purchase information at the beginning of the question, prepare the table assuming that the company used double$-$declining$-$balance depreciation.

Year Net Book Value $($Beginning of Year$)$ Depreciation Expense Accumulated Depreciation Net Book Value $($End of Year$)$

$2020$ $Answer $21$ Question $4$

$70000$

$Answer $22$ Question $4$

$35000$

$Answer $23$ Question $4$

$35000$

$Answer $24$ Question $4$

$35000$

$2021$ $Answer $25$ Question $4$

$35000$

$Answer $26$ Question $4$

$17500$

$Answer $27$ Question $4$

$52500$

$Answer $28$ Question $4$

$17500$

$2022$ $Answer $29$ Question $4$

$17500$

$Answer $30$ Question $4$

$8750$

$Answer $31$ Question $4$

$61250$

$Answer $32$ Question $4$

$8750$

$2023$ $Answer $33$ Question $4$

$8750$

$Answer $34$ Question $4$

$8750$

$Answer $35$ Question $4$

$70000$

$Answer $36$ Question $4$

$0$

d$)$ Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units$-$of$-$production method. The asset can produce one million units. Prepare the depreciation table.

Year Cost of Long$-$Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value

$2020$ $$70,000190,000$ $Answer $37$ Question $4$

$11020$

$Answer $38$ Question $4$

$11020$

$Answer $39$ Question $4$

$58980$

$2021$ $$70,000230,000$ $Answer $40$ Question $4$

$13340$

$Answer $41$ Question $4$

$24360$

$Answer $42$ Question $4$

$45640$

$2022$ $$70,000160,000$ $Answer $43$ Question $4$

$9280$

$Answer $44$ Question $4$

$33640$

$Answer $45$ Question $4$

$36360$

$2023$ $$70,000260,000$ $Answer $46$ Question $4$

$15080$

$Answer $47$ Question $4$

$48720$

$Answer $48$ Question $4$

$21280$