Problem 1: Equipment (vehicle) that cost $59,000 and on which $32,000 of accumulated depreciation has been recorded was disposed of for $11,000 cash. Make the entry to record this transaction. Hint: Compute BV and then gain (loss).

Problem 2: Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2022, Entity B decides that it will use the equipment for a total of 5 years. Compute the revised depreciation expense for 2022 and make the entry to record depreciation expense. Show work.