$17.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$ The company purchased equipment at the beginning of Year $1$ for $$400,000.$ In Years $1-4,$ the

company depreciated the asset on a straight$-$line basis with an estimated useful life of $8$ years and a $$30,000$ residual

value. What is the BOOK VALUE of the equipment at the end of year $4?$

Use the following to answer questions $1819$

The company purchased equipment for $$400,000$ on January $1,$ year $1.$ The equipment is expected to have a $5-$year

life, with a residual value of $$50,000$ at the end of its service life.

$18.$ $$\_\_\_\_\_\_\_\_\_\_\_$ Using the double declining balance method, determine depreciation expense for year $2.$

$19.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$ Using the straight$-$line method, determine book value at the end of year $2.$

Use the following to answer questions $20-22$

The company is in the process of closing its operations. It sold its $5-$year$-$old Front$-$end loader for $$100,000.$ The

loader originally cost $$200,000$ and had an estimated useful life of $8$ years and an estimated residual value of

$$25,000.$ The company uses straight$-$line depreciation for all equipment.

$20.$ $$\_\_\_\_\_\_\_\_\_\_\_$Calculate the book value of the loader at the end of the $5$th year.

$21.$ $$\_\_\_\_\_\_\_\_\_\_\_$What was the gain or loss on the sale of the loader at the end of the $5$th year; $($if loss, put $$ in

front of your answer$)?$

$22.$ $$\_\_\_\_\_\_\_\_\_\_\_$ Assume instead the company had originally estimated the Equipment had an estimated useful

life of $7$ years instead of $8$ years. What would be the gain or loss on the sale of the loader at the end of the $5$th

year $($if loss, put $$ in front of your answer$)?$