Saddlebrook Co. Purchased equipment costing $420,000 on credit which will last four years, and have a $ 24,000 salvage value on January 1, 2003. Saddlebrook Co. Sold the equipment after two years on December 31, 2004 for $ 244,00. The equipment will be depreciated using the straight-line method. required 1. calculate the depreciation expense which will be recognized on the equipment every year. 2. calculate the gain, or loss from the sale of the equipment on December 31, 2004. 3. Prepare Journal entries to record the following: a) purchase of equipment on January 1, 2003. b) depreciation of the equipment in the first year on December 31, 2003. c) sale of the equipment on December 31, 2004.