New lithographic equipment, acquired at a cost of $593,750 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $51,100. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.

On March 4 of Year 5, the equipment was sold for $87,000.

Required:

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1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank 162a51fbffbdfae_1	$fill in the blank 162a51fbffbdfae_2	$fill in the blank 162a51fbffbdfae_3
2	$fill in the blank 162a51fbffbdfae_4	$fill in the blank 162a51fbffbdfae_5	$fill in the blank 162a51fbffbdfae_6
3	$fill in the blank 162a51fbffbdfae_7	$fill in the blank 162a51fbffbdfae_8	$fill in the blank 162a51fbffbdfae_9
4	$fill in the blank 162a51fbffbdfae_10	$fill in the blank 162a51fbffbdfae_11	$fill in the blank 162a51fbffbdfae_12
5	$fill in the blank 162a51fbffbdfae_13	$fill in the blank 162a51fbffbdfae_14	$fill in the blank 162a51fbffbdfae_15

b. Double-declining-balance method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank 162a51fbffbdfae_16	$fill in the blank 162a51fbffbdfae_17	$fill in the blank 162a51fbffbdfae_18
2	$fill in the blank 162a51fbffbdfae_19	$fill in the blank 162a51fbffbdfae_20	$fill in the blank 162a51fbffbdfae_21
3	$fill in the blank 162a51fbffbdfae_22	$fill in the blank 162a51fbffbdfae_23	$fill in the blank 162a51fbffbdfae_24
4	$fill in the blank 162a51fbffbdfae_25	$fill in the blank 162a51fbffbdfae_26	$fill in the blank 162a51fbffbdfae_27
5	$fill in the blank 162a51fbffbdfae_28	$fill in the blank 162a51fbffbdfae_29	$fill in the blank 162a51fbffbdfae_30

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2. Journalize the entry to record the sale assuming that the manager chose the double-declining-balance method. If an amount box does not require an entry, leave it blank.

blank	CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentBuildingsDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -

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3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $74,600 instead of $87,000. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -