PROBLEM 3: Depreciation and Disposal of Fixed Assets (18 POINTS Ajax, Inc. purchased equipment was expected to have a useful life of 4 years, Or 40,0 operating hours, and a residual value ot s14,000. The equipment vas actually used for 10,150 hours during 20x2. SHOW W?LL BE GIVEN 1 NO WORK IS SHOWN. equipment on January 1, 20x2 for $214,000. The YOUR WORK NO CREDIT Part A. It Ajax used the straight-line method, what is depreciation expense for 20X2? (3 POINTS) Part B. It ajax used the activity-based method, what is depreciation expense for 20X2? (4 POINTS) Part c. Assume that on January 1, 20x3, the accumulated depreciation account related to the equipment (properly) had a balance of $50,000 i it. Ajax sold the equipment for $160,000 on January 1, 20x3. Please provide the entry to record the sale of the equipment. (8 POINTS) Part D. Assume the same facts as Part C above, except that the equipment was sold for $175,000. What is the amount of the gain or loss on the sale? (How much and which is it?) SHOW YOUR WORK. (3 POINTS