Morris Inc. recorded the following transactions over the life of a plece of equipment purchased In Year 1: Jan. 1, Year 1 Purchased equipment for $14,700 cash. The equipment was estimated to have a five-year life and $6, 530 salvage value and was to be depreciated using the straight- line method. Dec. 31, Year Recorded depreciation expense for Year 1. Sept. 30, Year Undertook routine repairs costing $756. 2 Dec. 31, Year Recorded depreciation expense for Year 2. Jan. 1, Year 3 Made an adjustment costing $2,800 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. June. 1, Year 4 Incurred $394 cost to oil and clean the equipment. Dec. 31, Year Recorded depreciation expense for Year 4. Jan. 1, Year 5 Had the equipment completely overhauled at a cost of $7,830. 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. Oct. 1, Year 6 Received and accepted an offer of $15, 400 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 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 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. (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 A MORRIS INC. Horizontal Statements Model Date Assets = Liabilities + Equity Net Statement of Cash Income Flows Jan. 01. Year 1 +/- IA Dec. 31, Year 1 Sept. 30, Year 2 Dec. 31, Year 2 Jan. 01, Year 3 Dec. 31, Year 3 June 01, Year 4 = Dec. 31, Year 4 Jan. 01, Year 5 Dec. 31, Year 5 Oct. 01, Year 6 Oct. 01, Year 6Required A Required B Required C Required D Determine the amount of depreciation expense to be reported on the income statements for Years 1 through 5. (F answers to nearest dollar amount.) Year Depreciation Expense Year 1 Year 2 Year 3 Year 4 Year 5Required A Required B Required C Required D Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. (Round intermediate calculations and final answers to nearest dollar amount.) Year Book Value Year 1 Year 2 Year 3 Year 4 Year 5Determine the amount of the gain or less Morris will report an the disposal of the equipment an October 1.r Year 5. {Round intermediate calculations and Final answer to nearest dollar amount] :I':l