Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
(1) What was the annual amount of depreciation for the years 2011, 2012, and 2013, assuming the straight-line method of depreciation is used?
(2) What was the book value of the equipment on January 1, 2014?
(3) Assuming that the equipment was sold on January 2, 2014, for $170,500, journalize the entry to record the sale.
(4) Assuming that the equipment had been sold on January 2, 2014, for $189,000 instead of $168,500, journalize the entry to record the sale.