On May 28, 2021, Pharoah Services purchased equipment for $102,000.giving the supplier a 1 year note at 6% due at maturity) for $80,680, and paid the balance with cash. Pharoah also paid Wu Engineering $7,800 cash for installing the equipment on May 30. The equipment's useful life was estimated to be five years, with an $18,600 residual value. The straight-line method of depreciation is used for equipment and Pharoah has a calendar year end. On October 4, 2023, the equipment was destroyed in an accident. Pharoah received $61.980 cash as insurance proceeds for the equipment. On May 28, 2021, Pharoah Services purchased equipment for $102,000.giving the supplier a 1 year note at 6% due at maturity) for $80,680, and paid the balance with cash. Pharoah also paid Wu Engineering $7,800 cash for installing the equipment on May 30. The equipment's useful life was estimated to be five years, with an $18,600 residual value. The straight-line method of depreciation is used for equipment and Pharoah has a calendar year end. On October 4, 2023, the equipment was destroyed in an accident. Pharoah received $61.980 cash as insurance proceeds for the equipment