Hi! Please help with the red sections in photos 2/3. I can't figure out depreciation for the life of me. It should be (39,300 - 3,000) / 5 = 7,260 but it says it's wrong ughhh

I also can't figure out what is supposed to be under other expenses and losses. I tried to use all of the different taxes and none were right.

SOS, thank you so much in advanced!!

Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company's balance sheet at December 31, 2019, is presented below. Cash Inventory Prepaid Insurance Equipment MORGAN COMPANY Balance Sheet December 31, 2019 $31,500 Accounts Payable 30,500 Interest Payable 6,204 Notes Payable 39,300 Owner's Capital $107,504 $12,750 278 55,500 38,976 $107,504 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. 2. 3. 4. Morgan paid $278 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $242,000 of inventory on account. Morgan sold for $482,000 cash, inventory which cost $266,000. Morgan also collected $31,330 in sales taxes. Morgan paid $226,000 in accounts payable. Morgan paid $15,500 in sales taxes to the state. Paid other operating expenses of $21,000. On January 31, 2020, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,500 federal income taxes are withheld. The salaries and wages are paid on February 1. 5. 6. 7. Adjustment data: 8. Interest expense of $278 has been incurred on the notes payable. 9. The insurance for the year 2020 was prepaid on December 31, 2019. 10. The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value. 11. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. Salaries ariu Wayes payable 8. Interest Expense 278 Interest Payable 278 9. Insurance Expense 517 Prepaid Insurance 517 10. Depreciation Expense 7200 INDHI lilililili Accumulated Depreciation-Equipment 7200 11. Payroll Tax Expense 8033 FICA Taxes Payable 4437 State Unemployment Taxes Payable 3132 Federal Unemployment Taxes Payable 464 LINK TO TEXT LINK TO TEXT LINK TO TEXT Other Operating Expenses Total Operating Expenses V Income From Operations Other Expenses and Losses DO cl State Unemployment Taxes Payable Net Income / (Loss) LINK TO TEXT LINK TO TEXT LINK TO TEXT