Equipment acquired on Jan 3, 2005, at a cost of 147,500, has an estimated useful life of eight years and an estimated residual value of $17,500.
a. What was the annual amount of depreciation for the years 2005,2006,and 2007 using the straight-line method of depreciation?
b. What was the book value of the equipment on Jan 1,2008?
c. Assuming that the equipment was sold on Han 2, 2008 for 95,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on Jan 2,2008, for 100,000 instead of 95,000, journalize the entry to record the sale.