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1. On January 1, Year 1, Thomas Company purchased equipment for $218,000. Thomas | paid...

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1. On January 1, Year 1, Thomas Company purchased equipment for $218,000. Thomas | paid $8,000 to have the machine installed. The equipment is expected to have a 5-year useful life and a salvage value of $26,000. Required: a) At what dollar amount should this equipment be recorded in Thomas's accounting records? (2 points) b) Compute depreciation expense for Year 1 and Year 2 using the straight-line method. (2 points) c) What is the book value at the beginning of Year 3? (3 points) d) Assume the equipment was sold on January 1, Year 3. for $135,000. Compute the amount of gain or loss from the sale. (3 points)

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