On July 1, 2020, Sport Company purchased for $3,600,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $150,000. Depreciation is taken for the portion of the year the asset is used. Instructions (a) Complete the form below by determining the depreciation expense and year-end book values for 12.31. 2020 and 12.31. 2021 using the

1. straight-line method.

2. double-declining balance method.

Straight-liine Method 2020 2021

Equipment $3,600,000 $3,600,000

Less: Accumulated Depreciation _______ _______

Year-End Book Value _______ _______

Depreciation Expense for the Year _______ _______

Double-Declining Balance Method

Equipment $3,600,000 $3,600,000

Less: Accumulated Depreciation _______ _______

Year-End Book Value _______ _______ Depreciation

Expense for the Year _______ _______

(b) If the equipment is sold on Sep 30th 2022, cash received from selling the equipment is $1,500,000, prepare the journal entry to record the sale of this equipment by using

1. Straight-line method

2. Double declining method