E1. Bobby purchases equipment with cost of $40,000 and salvage value of $3,500 and life of 4 years. Create a STRAIGHT LINE DEPRECIATION SCHEDULE. Year Depr. Cost Rate Depr. Exp. Accum. Depr. Book Value E2. Use the same Cost, SV and life for a depreciation schedule using DOUBLE DECLINING BALANCE Cost-$40,000 SV=$3,500 and Life = 4 years. Year Book Value Beg. Rate Depr. Exp. Accum. Depr. Book Value End 2 E3. Carlson purchased Equipment for $56,000 with salvage value $7,000 and a 10-year life. Carison used the asset for four years, straight line, but it was apparent that the Equipment would last only 4 more years. 1. What was the book value of the Equipment after 4 years? $ 2. What will be the depreciation expense in each of the remaining 4 years? Hint:take the remaining book value, subtract salvage value, and divide by remaining life. E4. Partial Year Depreciation--STRAIGHT LINE Tumwater purchased a truck for $38,000 on 07/01/15 with salvage value of $8,000 and useful life of 4 years. SL Depreciation is recorded on 12/31 each year to nearest whole dollar. What is the depreciation expense for year 1? What is the depreciation expense for year 2? Show your work! E5. Condor Company purchased a truck for $40,000 with salvage value of $4,000 and life of 5 years. After 3 years of use, Condor sold the truck for $15,000 cash. Using straight line depreciation, what was the book value after 3 years? Was there a gain or loss on the sale of the asset? GAIN LOSS (Circle) Make the journal entry for the sale of the asset. ACCOUNTS DEBIT CREDIT