VI. (12 points) The ABC Company, located in Boston, purchases a piece of equipment from a dealer in Chicago for $75,000. The cost of shipping the equipment, $6,000, will be paid for by ABC Co. It is estimated that the asset will last ten years and at the end of its useful life will have a salvage value of $13,000. When the equipment arrives it has to be set up and adjusted, at a cost of $12,000. Required Compute the depreciation expense for year one and year two (do each year separately) using

1. Straight-line

2. Double-declining balance

3. This part is independent of parts one and two

. Assume that a company purchased an asset for $500,000. At the end of four years the balance in the accumulated depreciation account is $100,000, at which time the asset is sold for $355,000. Required Provide the journal entry for the sale of the asset.