Part VII - Long-Lived Assets On January 1, 2010, Gray Company purchased a computer for $6,000. Gray closes its books every year on December 31. The computer is expected to have 5 years of service life and it is estimated to be worth $100 after 5 years. a. Give the depreciation expense for each year under the two methods of depreciation: straight- line and double declining balance. For the double declining balance method, also show the book value at the end of each year. (You may round numbers to the whole dollar.) Year Straight Line Depreciation expense Double Declining Balance Depreciation Expense Ending Net Book Value 1. 2010 2. 2011 3. 2012 4. 2013 5. 2014 b. Suppose that on December 31, 2012. the same computer is sold for $500. Assume that Gray uses the straight-line method. What transaction should Gray record on December 31, 2012 for this sale (assuming the annual depreciation has already been recorded)? Balance Sheet Income Statement Noncash Liabil Contrib. Earned Rev Expen Net Cash Asset + + + Assets ities Capital Capital enues -ses Income + +