Scenario #1: You are the controller for ABC Company. ABC purchased a piece of equipment for $60,000 that they use regularly. The equipment has a $5,000 residual value and a 10-year useful life. A. Calculate the annual depreciation expense on this equipment using the straight-line method: I I B. If this equipment was not used regularly, but more intermittently (more in some years than others), would there be a more appropriate method of depreciation to use than straight-line? Additionally, if the company wanted to record more depreciation expense on the equipment in the earlier years of use, what method would work best in this case? Why? Explain: At the end of year 6, the company decides to sell this piece of equipment to another company. In order to do this, you must first calculate the book value of the equipment at the end of year 6, and then compare that book value to the sales price in order to determine whether there was a gain or loss on the sale. C. What is the book value of the equipment at the end of year 6? D. If the sales price for the equipment = $30,000, what should be recorded, a gain or loss on the sale, and for how much? Why? Explain