PR 10-4B; Depreciation by two methods; sale of fixed assets New tire retreading equipment, acquired at a cost of $72,000 at the beginning of a fiscal year, has an estimated useful life of four years and estimated residual value of $5,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fourth year, the equipment was sold of $13,750. INSTRUCTIONS: 1. Detemine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equiupment at the end of the year by (a) the straight-lne method and (b) the double-declining-balance method. The following columnar headings are suggested for ech schedule: YEAR Depreciation Expense Accumulated depreciation, End of the Year Book Value, E.O.T.Y 2. Journalize the entry to record the sale. 3. Journalize the entry to record the sale, assuming that the equipment sold for $3,700 instead of $13,750