16. $ _ During the first two years, SON, Inc., drove the truck 100,000 and 110,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $150,000. If the truck has an estimated life of 4 years or 400,000 miles, with an estimated residual value of $50,000, what amount of depreciation expense should SON record in the second year using the activity-based method? 17. $ JMM Corporation purchased equipment at the beginning of Year 1 for $300,000. In Years 1 -4, JMM depreciated the asset on a straight-line basis with an estimated useful life of 10 years and a $10,000 residual value. What is the BOOK VALUE of the equipment at the beginning of Year 5? Chapter 7 Page 7-2 Use the following to answer questions 18 - 19 AD Enterprises purchased equipment for $400,000 on January 1, year 1. The equipment is expected to have a 4-year life, with a residual value of $50,000 at the end of its service life. 18. S 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 AJ Construction is in the process of closing its operations. It sold its 5-year-old Caterpillar 279C Compact Track Loader for $90,000. The loader originally cost $180,000 and had an estimated useful life of 8 years and an estimated residual value of $30,000. The company uses straight-line depreciation for all equipment. 20. $__ Calculate the book value of the loader at the end of the 5th year. 21. $__ What was the gain or loss on the sale of the loader at the end of the 5th year; (if loss, put - in front of your answer). 22. Record the sale of the loader at the end of the 5th year