Exercise 7-9 Shown below is a tabular summary relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $110. Part of the equipment was sold on the last day of the current year for cash proceeds. Use the information in the tabular summary to derive the missing amounts: (a) (b) Purchase of equipment on January 1. What was the cash paid? Depreciation recorded on December 31. What was the depreciation expense? Sale of part of the equipment on December 31. What was the gain on disposal? (c) (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Retained Earnings Revenue Expense Cash + Equipment Accum. Depr. - Equip. = + Common Stock + - Dividend Jan. 1 $1,040 (a) $ Dec. 31 -$93 (b) $ Dec. 31 430 -438 50 (c) $ Click if you would like to Show Work for this question: Open Show Work