QUESTION 2: Kirk Corp. purchased a factory equipment for $120,000 on January 1, 2014. The equipment has a useful life of 10 years and a salvage value of $20,000. Kirk Corp. uses the double declining balance method for calculating depreciation and records depreciation adjustment only at year-end. Required: a) Calculate depreciation expense for 2014 and prepare the adjusting entry. b) Calculate depreciation expense for 2015 and prepare the adjusting entry. c) Calculate carrying value (book value) of the equipment as of January 1, 2016. d) On January 1, 2016, the company sold this equipment for $78,000 cash. Prepare the journal entry for the sale of equipment (show necessary calculations)