tAnswer Question 1 factory equipment for $7,000 mated ue he oigment willov00 saage a company purchased record the depreciation 7000-100 Anwer Question 2 ort Answer Question 1 ompany purchased factory equipment for $7,000. It is estimated that the equipment will have a $700 salvage a c timated 5-year useful life. The company uses the double-declining-balance method of calculate the depreciation expense for first three years. Make the journal entry to deprecia record the depreciation expense for the third year. tion. In the space below, 000-100 630 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)