Depreciation by Two Methods; Sale of Fixed AssetNew lithographic equipment, acquired at a cost of $593,750 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimatedresidual value of $51,100. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basisof the data presented to the manager, the double-declining-balance method was selected.In the first week of the fifth year, on March 4, the equipment was sold for $87,000.Required:1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value ofthe equipment at the end of each year by the following methods:a. Straight-line methodDepreciationAccumulated Depreciation,Book Value,YearExpenseEnd of YearEnd of Year1$32$$4$4$45b. Double-declining-balance methodDepreciationAccumulated Depreciation,Book Value,YearExpenseEnd of YearEnd of Year1$2$$4%24 DepreciationAccumulated Depreciation,Book Value,YearExpenseEnd of YearEnd of Year1$$2$2$$4$$4$42. Journalize the entry to record the sale, assuming double-declining balance method is used. If an amount box does not require an entry, leave it blank.3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $74,600 instead of $87,000. If an amount box does not require an entry,leave it blank.3.

Name: Depreciation by Two Methods; Sale of Fixed AssetNew lithographic equi
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Depreciation by Two Methods; Sale of Fixed AssetNew lithographic equipment, acquired at a cost of $593,750 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimatedresidual value of $51,100. The manage