Lynbrook, Inc. purchased a tooling machine to use for the manufacturing of its new products on August

$1,2023.$ You have been asked to determine how much depreciation expense would be recognized under

the two different methods. The equipment costs $$165,000$ and is expected to have a value of $$15,000$ at

the end of its four$-$year life.

Required:

a$)$ Determine the amount of depreciation expense that will be recognized under each of the

following depreciation methods in $2023$ and $2024,$ the first and second years of the equipment$$s

useful life. Lynbrook has a policy to use the partial$-$years method of depreciation in the year of

purchase and sale. $($round to the nearest dollar, if needed$)$:

$1.$ Straight$-$line.

$2.$ Double$-$declining$-$balance

b$)$ Prepare the Property Plant & Equipment $($PPE$)$ section of the balance sheet on December $31,$

$2023($end of fiscal year$)$ under the double$-$declining$-$method, assuming the equipment is the

only plan asset owned by Lynbrook.

c$)$ Fast forward to $2025.$ Lynbrook sold the equipment on March $1,2025.$ Prepare the entry to

record the depreciation expense incurring in $2025$ and the entry to record the sale of the

equipment assuming the following for both Straight$-$line and Double$-$Declining$-$Balance:

a$.$ The equipment was sold for $$26,000.$

b$.$ The equipment was sold for $$135,000.$