Equipment acquired on January 8 at a cost of $144,930 has an estimated useful life of 14 years, has an estimated residual value of $8,850, and is depreciated by the straight-line method.

a.	What was the book value of the equipment at December 31 the end of the fifth year?
b.	Assuming that the equipment was sold on April 1 of the sixth year for $88,570, journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment. Refer to the Chart of Accounts for exact wording of account titles.

b. Assuming that the equipment was sold on April 1 of the sixth year for $88,570, journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles):

1. Depreciation for the three months until the sale date.

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ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2

2. The sale of the equipment. Round your final answers to the nearest whole dollar.

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