ya n g resource from Cengage Learn eBook Show Me How Calculator Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 $ 18,000 x Year 3 $ 18,000 x b. What was the book value of the equipment on January 1 of Year 4? Feedback Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, Journalize the entry to record the sale. If an amount box does not require an ent it blank. Jan. 3 Check My Work (Previous Ne