Omega Inc. acquired a new piece of filtering equipment on April 2, 2017. The equipment is expected to have a 4-year useful life and a residual value of 20,000. The following expenditures were associated with the purchase. List price of the equipment Transportation charges Property taxes Installation of equipment Interest charges Insurance Cost to repair equipment damaged during installation 145,000 1,500 4,000 13,500 1,000 2,000 900 Instructions:

(1) Determine the cost of this equipment to be established in the Equipment account of Omega Inc. (10 points)

(2) Prepare a complete depreciation schedule, beginning with calendar year 2017, under each of the methods listed below: a. Straight-line, with fractional years rounded to the nearest whole month. (10 points) b. 200-percent declining-balance, using the half-year convention. (10 points) c. 150-percent declining-balance, using the half-year convention. (10 points)

(3) Assume that Omega Inc. sells the equipment on December 31, 2019, for 50,000 cash. Compute the resulting gain or loss from this sale under straight-line depreciation method used in part (2 a) and record the journal entry for the sale of the asset. (10 points)