On January 1, 20X1, Pagoda Pond Construction acquired a small excavator for $85,000. This device had a 4-year service life to Pagoda, at which time it is expected that the equipment will be sold for a $10,000 salvage value. Pagoda uses the double-declining balance depreciation method. (a) Prepare a schedule showing annual depreciation expense, accumulated depreciation, and related calculations for each year. (b) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, 20X3. (c) Prepare journal entries to record the asset's acquisition, annual depreciation for each year, and the asset's eventual sale for $10,000.

(a) Year Annual Expense Accumulated Depreciation at End of Year Annual Expense Calculation X1 X2 X3 X4 (b) Property, Plant & Equipment (20X3) Equipment Less: Accumulated depreciation (c) GENERAL JOURNAL Date Accounts Debit Credit 1-Jan To record purchase of excavator 31-Dec 20X1 To record 20X1 depreciation 31-Dec 20X2 To record 20X2 depreciation 31-Dec 20X3 To record 20X3 depreciation 31-Dec 20X4 To record 20X4 depreciation 31-Dec 20X4 To record disposal of asset