The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019:

	December 31, 2020			December 31, 2019
Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019.	$	273,375		$	334,125

Required:

1. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020?
2. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine:
   1. What the original cost of the equipment was.
   2. What depreciation method is apparently being used.
   3. When the equipment was acquired.
3. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect.

Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Assets = Liabilities + Stockholders' Equit 42,525selected not Accumulated depreciationselected answer correct = not attempted answer correct attempted 17,475selected not Equipmentselected answer correct answer = not attempted + attempted incorrect Cashselected answer correct 60,000selected answer correct not attempted not attempted