On July 1, 2019, Sunland Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $20,000 salvage value. On December 31, 2022, the company estimated that the equipments remaining useful life was 10 years, with a revised salvage value of $5,000.

Prepare the journal entry to record depreciation on December 31, 2019.

Account Titles C/D

Depreciation Expense 3750 /

Accumulated Depreciation-Equipment / 3750

Prepare the journal entry to record depreciation on December 31, 2020.

Account Titles C/D

Depreciation Expense 7500 /

Accumulated Depreciation-Equipment / 7500

a)

Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $_________

b)

Prepare the journal entry to record depreciation on December 31, 2022.

Account Titles C/D

Depreciation Expense ________ /

Accumulated Depreciation-Equipment / _________

c)

Compute the balance in Accumulated DepreciationEquipment for this equipment after depreciation expense has been recorded on December 31, 2022.

Accumulated DepreciationEquipment $_______