New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. In the first week of the fifth year, on March 4, the equipment was sold for $134,570. Required: 1. Determine the annual depreciation expense for each of the estimated 5 years of use, the accumulated depreciation at the end of each year, and the of the equipment at the end of each year by (a) the and (b) the double-declining-balance method. 2. Journalize the entry to record the sale, assuming the manager chose the double-declining-balance method. 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $88,180 instead of $134,570. Chart of Accounts Chart of Accounts \begin{tabular}{ll} 116 Merchandise Inventory & \multicolumn{1}{c}{ EXPENSES } \\ 117 Supplies & 510 Cost of Merchandise Sold \\ 119 Prepaid Insurance & 520 Salaries Expense \\ 120 Land & 521 Advertising Expense \\ 123 Delivery Truck & 522 Depreciation Expense-Delivery Truck \\ 124 Accumulated Depreciation-Delivery Truck & 523 Delivery Expense \\ 125 Equipment & 524 Repairs and Maintenance Expense \\ 126 Accumulated Depreciation-Equipment & 529 Selling Expenses \\ 130 Mineral Rights & 531 Rent Expense \\ 131 Accumulated Depletion & 532 Depreciation Expense-Equipment \\ 132 Goodwill & 533 Depletion Expense \\ 133 Patents & 534 Amortization Expense-Patents \end{tabular} Chart of Accounts 535 Insurance Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 1. Determine the annual depreciation expense for each of the estimated 5 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 (a) the straight-line method and (b) the double-declining-balance method. b. Double-declining-balance method Starting Questions 5 b. Double-declining-balance method Accumulated Depreciation, \begin{tabular}{|c|c|c|c|} \hline Year & Depreciation Expense & End of Year & Book Value, End of Year \\ \hline 1 & $ & $ & $ \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline \end{tabular} General Journal \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ JOURNAL } & \multicolumn{2}{|c|}{ ACCOUNTING } \\ \hline & DATE & DESCRIPTION & POST. REF. & DEBIT & CREDIT & ASSETS & LIABILIT \\ \hline 1 & & & & & & & \\ \hline 2 & & & & & & & \\ \hline 3 & & & & & & & \\ \hline 4 & & & & & & & \\ \hline \end{tabular}