Question $4$: $(16$ marks$)$

Crane Co$.$ purchased equipment on March $1,2024,$ for $$105,000$ on account. The equipment

had an estimated useful life of ten years, with a residual value of $$5,000.$ Crane Co$.$ uses the

double declining balance method of depreciation with a $20\%$ rate and calculates depreciation for

partial periods to the nearest month. The company has an August $31$ year end.

Required:

a$)$ Record the acquisition of the equipment on March $1,2024$

b$)$ Record depreciation at August $31,2024,2025,$ and $2026$

c$)$ Record the disposal on September $1,2026,$ under the following separate and unrelated

scenarios:

i$)$ It was scrapped, with no residual value

ii$)$ It was sold for $$55,000$

iii$)$ It was sold for $$45,000$