Use the following information to answer Questions 33 - 36 Chico Inc. purchased a piece of equipment. Purchase date Cost Residual value Estimated life June 1 2015 $70,000 $6,000 4 years Anticipated annual hourly Use 2015 2600 2016 5600 2017 6600 2018 3800 2019 1400 33. Assuming the firm uses the straight line method of depreciation, compute the Carrying amount at the end of year 2016. (Rounded if necessary) (a) $38,000 (b) $40,667 (c) $42,000 (d) $44,667 34. Assuming the firm uses the Double Declining method of depreciation, compute the Carrying amount at the end of year 2016. (Rounded if necessary) (a) $45,208 (b) $35,000 (c) $32,000 (d) $24,792 35. Assuming the firm uses the Units of Production method of depreciation, compute the Carrying amount at the end of year 2016. (Rounded if necessary) (a) $43,760 (b) $41,000 (c) $38,760 (d) $31,000 30. Assuming the firm uses the straight line method of depreciation and it sells the equipment on June 30, 2017 (Rounded if necessary). The cash proceeds on that date were $40,000. The Journal entry to record the disposal is; (a) CR Cash Accumulated Depreciation DR $40,000 $33,333 Gain on Disposal Equipment $3,333 $70,000 (b) CR Cash Accumulated Depreciation DR $40,000 $35,000 Gain on Disposal Equipment $5,000 $70,000 (c) CR Cash Accumulated Depreciation DR $40,000 $36,333 Gain on Disposal Equipment $6,333 $70,000 CR Cash DR $40,000 Gain on Disposal Equipment $1,000 $70.000