Problem 3: Depreciation: gains and losses in financial statements (20points, 15 min) On March 1, 2010, Amalfi, Inc. purchased equipment with an estimated 10-year life for $42,600. The residual value was estimated at $9.900) On April 1, 2012 Amalfi closed one of its plants and sold this equipment for $33,600 cash. 4860 x throox x @) Assume that Amalfi uses straight-line depreciation method (round to the nearest month); compute the following for this equipment: (8 points) Depreciation Expense 2010 Depreciation Expense 2011 7/2:2yo 1 4260 Depreciation Expense 2012 2 y 2600 AR 34 80 Book Value at date of sale in 2012 Gain or (Iloss) on sale in 2012 underline the correct term 48.0$ (b) Assume that Amalfi uses 200% declining depreciation method (Rounds to the nearest month); compute the following for this equipment (points) Depreciation Expense 2010 Bu 4260 -12 Depreciation Expense 2011 8520 Depreciation Expense 2012 4 260 Book Value at date of sale in 2012 25 Gain or (Loss) on sale in 2012 underline the correct term 2.600 ggoo