Jackson purchased equipment on 1/1/16 for $100,000. The equipment had a 10 year useful life, $5,000 salvage value, and used the straight line method. Assume that Jackson last recorded depreciation on 12/31/20.

1. First record 2021 depreciation up to 4/1/21. You only need to do this once, as it will be the same for every scenario. Record the journal entry for each independent scenario.

2. Jackson disposed of the equipment on 4/1/21, in one of the following manners. Assume each scenario is independent, prepare the journal entry for the disposal.

1. Jackson sold the equipment for $30,000.
2. Jackson exchanged the equipment for new equipment worth $43,000 and paid $2,000. The exchange lacked commercial substance. Hint: first determine FV of equipment given up.
3. Jackson exchanged the equipment for new equipment worth $60,000 and received $5,000 cash. The exchange lacked commercial substance. Hint: first determine FV of equipment given up.
4. Jackson exchanged the equipment for new equipment worth $60,000 and paid $5,000 cash. The exchange lacked commercial substance. Hint: first determine FV of equipment given up