On January 2, 2016, McNally's Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years. The estimated residual value is $20,000. Calculate the depreciation expense for 2016 and 2017 and how much would accumulate in the Accumulated Depreciation account by December 31, 2017, if they use the double-diminishing-balance method of depreciation? What would be the carrying amount? Write the journal entry to record the depreciation on Dec 31, 2017.