Lotus purchased an equipment for $28000 on June 30, 2020. The company uses straight line method to depreciate its asset . The residual value was $4000. The estimated useful life is 6 years .

REQUIRED

1. Make a schedule of depreciation for the asset

2. Journalize the depreciation expense in 2020

3. Give a balance sheet extract for the year 2022

4. Journalize the transaction if company decides to sell the asset for $ 8000 in

December 2023

5. Journalize the scrapping of the asset in December 2024