Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in 2018:

Jan.	1, 2018		Purchased equipment for $14,800 cash. The equipment was estimated to have a five-year life and $5,700 salvage value and was to be depreciated using the straight-line method.
Dec.	31, 2018		Recorded depreciation expense for 2018.
Sept.	30, 2019		Undertook routine repairs costing $764.
Dec.	31, 2019		Recorded depreciation expense for 2019.
Jan.	1, 2020		Made an adjustment costing $3,050 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates.
Dec.	31, 2020		Recorded depreciation expense for 2020.
Jun.	1, 2021		Incurred $341 cost to oil and clean the equipment.
Dec.	31, 2021		Recorded depreciation expense for 2021.
Jan.	1, 2022		Had the equipment completely overhauled at a cost of $7,900. The overhaul was estimated to extend the total life to seven years. The salvage value did not change.
Dec.	31, 2022		Recorded depreciation expense for 2022.
Oct.	1, 2023		Received and accepted an offer of $15,700 for the equipment.

Required

1. Use a horizontal statements model like the following one to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example.
2. Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022.
3. Determine the book value (cost accumulated depreciation) Morris will report on the balance sheets at the end of the years 2018 through 2022.
4. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023.

Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022. (Round your answers to nearest dollar amount.)

Determine the book value (cost accumulated depreciation) Morris will report on the balance sheets at the end of the years 2018 through 2022. (Round intermediate calculations and final answers to nearest dollar amount.)

Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023. (Round intermediate calculations and final answer to nearest dollar amount. Loss amount should be indicated with a minus sign.)

Required A Required B Required Required D Use a horizontal statements model like the following one to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. (Use + for increase, - for decrease, and leave the cell blank if the element is not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element was not affected by the transactions, leave the cell blank.) Show less MORRIS INC. Horizontal Statements Model = Liabilities + Equity Net Income Date Assets Statement of Cash Flow +/- IA Jan. 01, 2018 Dec 31, 2018 Sept. 30, 2019 Dec 31, 2019 Jan. 01, 2020 Dec 31, 2020 June 01, 2021 Dec 31, 2021 Jan. 01, 2022 Dec 31, 2022 Oct. 01, 2023 Oct. 01, 2023 Year Depreciation Expense 2018 2019 2020 2021 2022 Year Book Value 2018 2019 2020 2021 2022