Problem 1. ABC Co. purchases equipment with a cost of $120,000 on January 1, 2023. ABC paid cash. The equipment has no salvage value. The useful life is 5 years. a. Record the journal entry for the purchase of the equipment. b. Calculate the depreciation for the first year, 2023, using straight line depreciation and record the appropriate journal entry. c. What is the book value after the 2023 entry for depreciation? d. Calculate the depreciation for 2024, using straight line depreciation and record the appropriate journal entry. e. What is the book value after the 2024 entry for depreciation? f. ABC sells the equipment after recording the 2024 year of depreciation for $75,000. Record the journal entry to dispose of the equipment. g. Assume the same facts as in part f. above except ABC receives $60,000 cash. Record the journal entry to dispose of the equipment. h. Assume the same facts as in part f. above except the equipment is worthless and ABC disposes of the equipment and receives $0 cash. Record the journal entry to dispose of the equipment.