3-1. (12 points) On October 1, 2017, Sogang Company purchased factory equipment with an invoice price of $76,000. Other costs incurred were freight costs, $1,500; installation costs, $2,000; material and labor costs in testing equipment, $500; oil lubricants and supplies to be used with equipment, $1,000; fire insurance policy covering equipment for next 2 years, $3,000. The equipment is estimated to have a $5,000 residual value at the end of its 5-year useful life. Determine the depreciation expense for 2017 and 2018 using the double-declining-balance method. 3-2. (14 points) On September 30, 2018, Sogang Company exchanged old delivery equipment and $24,000 for new delivery equipment. The old delivery equipment was purchased on January 1, 2016, for $84,000 and was estimated to have a $12,000 residual value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31, 2017. It is estimated that the fair value of the old delivery equipment is $39,000 on September 30, 2018. Prepare the journal entries that should be recorded on September 30, 2018 for Sogang Company which uses the straight-line method of depreciation