On January 2. Lev Company purchases equipment for use in fabrication of a part for one of its key products. The equipment costs $76.000, and its estimated useful life is five years, after which it is expected to be sold for $8.000.

Prepare journal entries to record the initial purchase of the equipment on January 2 and the year-end depreciation adjustment on December 31, and post the journal entries to T-accounts. Assume that Lev Company uses the straight-line depreciation method.

be sold for 88000 . Required Assume that Lev Compary uses the straight-line depredation method. Note: if there is no poshns for a joumx entry reference loted lielve the inswer biank or add a sero