Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ 125,000 X Feedback Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. Learning Objective 3. b. Assume that the equipment was sold on April 1 of the fifth year for $125,000. 1. Journalize the entry to record depreciation for the three months until the sale date. Depreciation Expense-Equipment 2,125 Accumulated Depreciation Equipment 2,125