Response to the following problem:
Equipment acquired on January 3, 2004, at a cost of $96,000, has an estimated useful life of six years and an estimated residual value of $6,000.
a. What was the annual amount of depreciation for the years 2004, 2005, and 2006, using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1, 2007?
c. Assuming that the equipment was sold on January 2, 2007, for $38,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 2, 2007, for $53,000 instead of $38,000, journalize the entry to record the sale.