Instructions Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. A What was the pook value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fith year for $125,000, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment. Chart of Accounts General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable 116 Merchandise Inventory EXPENSES 510 Cost of Merchandise Sold 117 Supplies 119 Prepaid Insurance 520 Salaries Expense 521 Advertising Expense 120 Land 123 Delivery Truck 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 124 Accumulated Depreciation-Delivery Truck 524 Repairs and Maintenance Expense 125 Equipment 529 Seling Expenses 126 Accumulated Deprecation-Equipment Chart of Accounts 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense-Equipment 132 Goodwill 533 Depletion Expense 133 Patents 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital 311 Owner's Drawing First Question A What was the book value of the equipment at December 31 the end of the fourth year? S Journal wording of account titles): 1. Depreciation for the three months until the sale date JOURNAL DATE POST. REF. DEBIT CREDIT DESCRIPTION Journal 2. The sale of the equipment JOURNAL ACCOUNTING DATE DESCRIPTION POST. REF. LIABILIT DEBIT CREDIT ASSETS