New lithographic equipment, acquired at a cost of $940,000 atthe beginning of a fiscal year, has an. 1 answer below »

New lithographic equipment, acquired at a cost of $940,000 atthe beginning of a fiscal year, has an estimated useful life offive years and an estimated residual value of $105,750. The managerrequested information regarding the effect of alternative methodson the amount of depreciation expense each year. On the basis ofthe data presented to the manager, the double-declining-balancemethod was selected. In the first week of the fifth year, theequipment was sold for $151,924. Required: 1. Determine the annualdepreciation expense for each of the estimated five years of use,the accumulated depreciation at the end of each year, and the bookvalue of the equipment at the end of each year by (a) thestraight-line method and (b) the double declining- balance method.Round your answers to the nearest whole dollar. 2. On January 1,journalize the entry to record the sale. Refer to the Chart ofAccounts for exact wording of account titles. 3. On January 1,journalize the entry to record the sale, assuming that theequipment was sold for $105,874 instead of $151,924. Refer to theChart of Accounts for exact wording of account titles.

 

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