On December 31, 2017 ABC Company purchased equipment worth $270,000. The equipment has a useful life of six years and no residual value. Depreciation is recorded beginning the month after acquisition and will be recorded up until the month of disposal. The company uses the straight-line method of depreciation.

Required a) Given that the company's year end is December 31, complete the following table.

Do not enter dollar signs or commas in the input boxes. Round all dollar figure answers to the nearest whole number.

Year	Cost of Long-Term Asset	Depreciation Expense	Accumulated Depreciation	Net Book Value
2018	$270,000	$Answer	$Answer	$Answer
2019	$270,000	$Answer	$Answer	$Answer
2020	$270,000	$Answer	$Answer	$Answer
2021	$270,000	$Answer	$Answer	$Answer
2022	$270,000	$Answer	$Answer	$Answer
2023	$270,000	$Answer	$Answer	$Answer

b) On June 30, 2023, ABC Company sold the equipment for $5,000 Prepare the journal entry to record the depreciation on the disposal and the sale. You will need to recalculate the depreciation expense for 2023 from part a) to account for the sale part-way through the year.

Enter all debit accounts in alphabetical order.

Date	Account Title and Explanation	Debit	Credit
Jun 30	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck		Answer
	To update depreciation before disposal
Jun 30	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseBuildingCashDepreciation ExpenseEquipmentGain on Disposal of AssetLandLoss on Disposal of AssetMachine (New)Machine (Old)Notes PayableNotes ReceivableTruck		Answer
	To record the sale of equipment