Sheridan Limited purchased delivery equipment on March 1, 2016, for $133,750 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,940. The equipment was disposed of on November 30, 2018. Sheridan uses the diminishing-balance method at one times the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. Your answer is partially correct. Try again. Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to o decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) 1. It was sold for $58,250. 2. It was sold for $81,180. 3. It was retired for no proceeds. No. Date Account Titles and Explanation Debit Credit Nov. 30 Depreciation Expense 15408 X Accumulated Depreciation - Equipment 15408 (To record depreciation on equipment disposed) 58250 (1) Nov. 30 cash 72118 Accumulated Depreciation - Equipment 3382 quipmIL UIS puseu (1) Nov. 30 cash 58250 Accumulated Depreciation - Equipment 72118 Loss on Disposal 3382 Equipment 133750 (2) Nov. 30 Cash 81180 Accumulated Depreciation - Equipment 72118 Equipment 133750 Gain on Disposal 19548 (3) Nov. 30 Accumulated Depreciation - Equipment 72118 Loss on Disposal 61632 Equipment 133750 Ivanhoe Limited competes in the fast food industry with Sarasota Limited. Ivanhoe embarked on a major expansion in 2018, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Ivanhoe has. Sarasota, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on a strategy of making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars): 2018 2017 2016 Ivanhoe Total assets Net sales Net income $1,830 3,224 358 $1,107 $990 1,540 1,600 146 140 Sarasota 768 Total assets Net sales Net income 1,810 954 990 1,663 2,000 197 210 168 NILAI Total assets $1,830 3,224 358 $1,107 $990 1,540 1,600 Net sales 146 140 Net income Sarasota Total assets Net sales Net income 768 954 990 1,810 1,663 2,000 197 210 168 (a) Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2017 and 2018. (Round answers to 1 decimal place, e.g. 5.2% or 5.2.) Sarasota Ivanhoe 2018 2017 2017 2018 (1) Profit margin 9.5% 11.11% 11.91% 9.3/% X (2) Asset turnover times 1.4 2.4 times 1.8 times 1.74 times X 0.2 % 0.2 % (3) Return on assets 0.2 || % 0.1 || %