Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime.

Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime. Required: (1) Prepare a table showing depreciation expense and book value of the equipment for the first three years under each of the following methods: a. Straight-line method b. 200% declining balance method Units of output method actual units produced each year were as follows: 2018 8,000 2019 6,400 2020 4,800 c. (2) Now assume that at the end of 2020, Monroe Co. decided to sell the equipment. Prepare a journal entry to show the sale if the company received $46,000 for the sale of the equipment