Question Assume that on January 2, 2019, a Freshly Brewed franchise purchased fixtures for $15,400 cash, expecting the fixtures to remain in service five years. The restaurant has depreciated the fixtures on a double-diminishing-balance basis, with $1,200 estimated residual value. On June 30, 2020, Freshly Brewed sold the fixtures for $6,400 cash. Requirements 1. Record the sale of the fixtures. 2. Management is thinking of switching to the straight-line method of depreciation. Do you agree? Why or why not