On April 1,2016, Cyclone's Backhoe Co. purchases a trencher for $280,000 The machine is expected to Exercise 10-11 last five years and have a salvage value of $40,000. Compute depreciation esxpense for both 2016 an2017etine assuming the company uses the straight-line method. depreciation2 On October 10, the stockholders equity of Sherman Systems appears as follows: Exercise 13-10 Recording and reporting treasury stock transactions P3 Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings . 720,000 216,000 864,000 74 Chapter 13 Accounting for Corporations 1. Prepare journal entries to record the following transactions for Sherman Systems a Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. eck (1) Di. Retained ngs$14,000 2. Explain how the company's equity section changes after the October 11 treasury stock purchase, and prepare the revised equity section of its balance sheet at that date