Extra Credit - Chapter 10 Problem - Do both problems for full credit Equipment costing $96,000 with a useful life of 8 years and a residual value of $8,000 has been depreciated for 5 years by the straight-line method. Assume a fiscal year ending December 31. 1. What is the book value at the end of the fifth year of use? If early in the sixth year it is estimated that the remaining useful life is 4 years (instead of 3) and the residual value is $7,000, what is the amount of depreciation for the seventh year? (a) (b) Computer equipment (office equipment) purchased 7 1/2 years ago for $220,000, with an estimated life of 10 years and a residual value of $12,000, is now sold for $80,000 cash. (Appropriate entries for depreciation had been made for the first seven years of use.) Journalize the following entries: 2. Record the depreciation for the one-half year prior to the sale, using the straight-line method. Record the sale of the equipment. Assumi above to record the sale. (a) (b) (c) ng that the equipment had been sold for $45,000 cash, prepare the entry for (b)