t Answer Question 1 purchased factory equipment for $7,000. It is estimated that the equipment will have a $700 salvage double-declining-balance method of value at the end of its estimated 5-year useful life. The company uses the depreciation. record the depreciation expense for the third year. depreciation expense for first three years. Make the journal entry to In the space below, calculate the 1000-100 6300 Short Answer Question 2 On January 1, 2017, Pinkley Company sells office furniture for $300,000 cash. The office furniture originally cost $750,000 when purchased on January 1, 2010. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $75,000. a) What gain should be recognized on the sale? Make the journal entry to record the sale b)