Sweet company shows the following entries in its Equipment account for 2018. All amounts are based on historical cost.

Equipment

2018

2018

1-Jan

Balance

134,430

30-Jun

Cost of Equipment Sold

23,620

10-Aug

Purchases

34,510

(Purchased prior to 2018)

12-Aug

Freight on Equipment Purchased

760

25-Aug

Installation costs

2,780

10-Nov

Repairs

460

(a) Prepare correcting entry if necessary

Account Titles and Explanation Debit Credit

(b) Assuming that depreciation is to be charged for a full year on the ending balance in the asset account compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016.

(1) Straight-line

$

(2) Sum-of-the-years-digits

$