Morris Inc recorded the following transactions over the life of a piece of equipment purchased in Year 1 Jan. 1, Year 1 Purchased equipment for $106,000 cash. The equipment was estimated to have a five-year life and 55,000 salvage value and was to be depreciated using the straight-line method Dec. 31, Year 1 Recorded depreciation expense for Year 1. Sept. 30, Year 2 Undertook routine repairs costing 5900 Dec. 31, Year 2 Recorded depreciation expense for Year 2 Jan. 1, Year 3 Made an adjustment costing $2,700 to the equipment. It improved the quality of the output but did not affect the Dec 31, Year 3 Recorded depreciation expense for Year 3. June 1, Year 4 Incurred $2,450 cost to oil and clean the equipment. Dec 31, Year 4 Recorded depreciation expense for Year 4. Jan. 1, Year 5 Had the equipment completely overhauled at a cost of $12,200. The overhaul was estimated to extend the total life to seven years. The salvare value did not change Dec. 31, Year 5 Recorded depreciation expense for Year 5. Oct. 1, Year 6 Received and accepted an offer of 535,000 for the equipment. Required a. Use a honzontal statements model like the following one to show the effects of these transactions on the elements of the financial statements For Oct 1. Year 6. enter depreciation first and then sale of an asset Use for increase for decrease, and NA for not affected. The first event is recorded as an example b. Determine the amount of depreciation expense to be reported on the income statements for the years Year through Year 5 c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of the years Year 1 through Year 6 d. Determine the amount of the gain or loss Morns will report on the disposal of the equipment on October 1 Year 6 e. Prepare the journal entry for the disposal of the equipment on the 1 Your Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Use a horizontal statements model like the following one to show the effects of these transactions on the elements of the financial statements. For Oct. 1, Year 6, enter depreciation first and then sale of an asset. Use + for increase, - for decrease, and NA for not affected. The first event is recorded as an example. (In the Cash Flow column, use the initials oA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event.) Show less Date Assets HORIZONTAL STATEMENTS MODEL Liabilities Equity Net Inc. NA NA NA Cash Flows IA Jan 1 Year 1 Dec 31, Year 1 Sept 30, Year 2 NA NA Dec 31, Year 2 Jan 1, Year 3 Dec 31, Year 3 June 1 Year 4 Dec 31 Year 4 Jan 1. Year 5 Dec 31 Year 5 Oct 1 Year 6 Required Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Determine the amount of depreciation expense to be reported on the income statements for the years Year (Round your answers to the nearest dollar amount.) Year Depr. Exp. Year 1 Year 2 Year 3 Year 4 Year 5 Complete this question by entering your answers in the tabs below. Book Required A Required B Required Required Required Pin Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of the years Year 1 through Year 6. Round your answers to the nearest dollar amount.) Year Book Value Year 1 Year 2 Year 3 Year 4 Years Year Required A Required B Required Required D Required E Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. (Round intermediate calculations and final answer to nearest dollar amount) Gain on sale Required A Required B Required C Required D Required E Prepare the journal entry for the disposal of the equipment on October 1, Year 6. (If no entry is required for a transaction "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record entry for disposal of the equipment on October 1, Year 6. Note: Enter debits before credits Date October 1, Year 6 General Journal Debit Credit