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New lithographic equipment, acquired at a cost of $$940,000$ on March $1$ at the beginning of a fiscal year, has an estimated useful life of $5$ years and an estimated residual value of $$105,750.$ The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.

In the first week of the fifth year, on March $4,$ the equipment was sold for $$151,924.$

Required:

$1.$ Determine the annual depreciation expense for each of the estimated $5$ years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by $($a$)$ the straight$-$line method and $($b$)$ the double$-$declining$-$balance method.

$2.$ Journalize the entry to record the sale, assuming the manager chose the double$-$declining$-$balance method.

$3.$ Journalize the entry to record the sale in $(2),$ assuming that the equipment was sold for $$105,874$ instead of $$151,924.$

$1$a$)$ Straight line method:

year $,$ depr expense $,$ accum depr$-$EOY $,$ book value$-$EOY

$1,166850,166850,773150$

$2,166850,333700,606300$

$3,166850,500550,439450$

$4,166850,667400,272600$

$5,166850,834250,105750$

$1$b$)$ double declining method:

year $,$ depr expense $,$ accum depr$-$EOY $,$ book value$-$EOY

$1,??,376000,564000$

$2,??,??,338400$

$3,??,??,203040$

$4,??,??,121824$

$5,??,??,105750$

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