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 $14,400 cash. The equipment was estimated to have a five-year life and $6,420 salvage value and was to be depreciated using the straight-line method. Dec. 31, Year Recorded depreciation expense for Year 1. 1 Sept. 30, Year Undertook routine repairs costing $757. 2 Dec. 31, Year Recorded depreciation expense for Year 2. 2 Jan. 1, Year 3 Made an adjustment costing $2,880 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. Dec. 31, Year Recorded depreciation expense for Year 3. 3 June. 1, Year 4 Incurred $350 cost to oil and clean the equipment. Dec. 31, Year Recorded depreciation expense for Year 4. 4 Jan. 1, Year 5 Had the equipment completely overhauled at a cost of $7,730. The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Dec. 31, Year Recorded depreciation expense for Year 5. 5 Oct. 1, Year 6 Received and accepted an offer of $15,900 for the equipment. Required a. Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. The f event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Years 1 through 5. c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 throu Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. a. Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Years 1 through 5. c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of depreciation expense to be reported on the income statements for Years 1 through S. (Round your answers to nearest dollar amount.) Depreciation Year Expense Year 1 $ 1,596 Year 2 $ 1,596 Year 3 $ 2,556 Year 4 $ 2,556 Year 5 3,429