Lucy Company purchased equipment whose selling price was $155,000. The following costs were also incurred: sales tax: $12,400; transportation: $3,500; installation: $3,000, insurance during transit: $1,200. Annual insurance totaled $10,000. Journalize the purchase of the equipment. Lucy paid cash. 4. On January 1, 2020 Kami Co. purchased equipment for $110,000 cash. The useful life is expected to be 9 years with an estimated salvage value of $11,000. At the end of year 8, Keaubie decided to increase the useful life to 12 years (in total) and reduce the salvage value to $5,000. a. Journalize the purchase b. Journalize year one's depreciation using the straight-line method c. What is the new depreciation amount beginning with year nine? 6. On January 1, 2021 Lilly Company purchased equipment costing $125,000. The estimated useful life of the equipment is 8 years and the estimated salvage value is $25,000. a. Determine the depreciation rate using double declining balance method b. Calculate the first year's depreciation c. What is the book value at the end of the second year?