: Smart Hardware purchased new shelving for its store on April 1, 2014. The shelving is expected to have a 7-year life and no residual value. The following expenditures were associated with the purchase: Cost of the shelving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,000 Freight charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Sales taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780 Installation of shelving . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700 Cost to repair shelf damaged during installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 Instructions a. Compute depreciation expense for the years 2014 through 2016 under each depreciation method listed below: 1. Straight-line, with fractional years rounded to the nearest whole month. 2. 200 percent declining-balance. 3. MACRS b. Assume that Smart Hardware sold the old shelving that was being replaced. The old shelving had originally cost $9,000. Its book value at the time of the sale was $400. Record the sale of the old shelving under the following conditions: 1. The shelving was sold for $1,200 cash. 2. The shelving was sold for $200 cash.