Grace Company owns equipment that cost $70,000 when purchased on January 1, 2018. It has been depreciated using the straight-line method based on estimated salvage value of $7,000 and an estimated useful life of 5 years.

Prepare Grace Companys journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (a) Sold for $40,000 on January 1, 2021. (b) Sold for $40,000 on April 1, 2021 (c) Sold for $15,000 on January 1, 2021. (d) Sold for $15,000 on September 1, 2021. (e) Repeat (a), assuming Grace uses double-declining balance depreciation. (f) Repeat (c), assuming Grace uses double-declining balance depreciation.