Determine the depreciation, for the year of acquisition and for the following year of a fixed asset acquired on October 1 for $500,000, with an estimated life of 5 years, and residual value of $50,000, using: a. The double declining-balance method. Assume a fiscal year ending December 31. Year of acquisition: 200,000 x Following year: $ 120,000 X b. The straight-line method. Assume a fiscal year ending December 31. Year of acquisition: $ Following year: $ Feedback Check My Work Incorrect Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? $ 11,250 b. Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment. 6,500 Gain Feedback Check My Work Correct c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 59,000 Accumulated Depreciation 22,500 Equipment 75,000 x Gain on Sale of Equipment 6,500 Feedback Check My Work