On October 1, 2020, Sport Company purchased for $3,200,000 snow-making equipment having an expected useful life of five years with an estimated salvage value of $120,000. Sport had been using the double-declining balance method for the depreciation on the equipment. Depreciation is taken for the portion of the year the asset is used.

At the beginning of 2022, Sport paid $600,000 to overhaul the equipment and switched the depreciation method from double-declining balance method to straight-line method. As a result of the overhaul Sport determined the useful life of the equipment would be five years. The estimated salvage value is $120,000.

On August 1, 2025, Sport sold the equipment for $792,000.

1. Compute the depreciation expense for 2020
2. Compute the depreciation expense for 2021
3. Compute the depreciation expense for 2022
4. Prepare the journal entry in the following format to record the depreciation and the sale of the equipment in 2025.

DR. xxxxxx $

CR. Xxxxxx $