On April 1, 2014, Mattson Industries purchased new equipment at a cost of $325,000. The useful life of this equipment was estimated at 5 years, with a residual value of $25,000.

Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each depreciation method listed below.

a. Straight-line, with depreciation for fractional years rounded to the nearest whole month.

b. 200 percent declining-balance.

c. Assume that the equipment is sold at the end of December 2016, for $176,250 cash. Prepare the journal entry to record the sale of the equipment under the straight-line method.