Question: answer in 20 min with full details 2/ 6 Question 2 (25 points) Part A: On January 1s, 2017, 626 Company purchased equipment for $235,000.

answer in 20 min with full details

2/ 6 Question 2 (25 points) Part A: On January 1s, 2017, 626 Company purchased equipment for $235,000. The estimated useful life of this asset was 8 years, and the salvage value was $35,000. Required: 1. Prepare a schedule showing depreciation for the first three years of life of the asset, assuming that the company used the straight line method of depreciation. 2. Prepare the journal entry to record depreciation for the first year only. 3. Prepare a schedule showing depreciation for the first three years of life of the asset, assuming that the company used the double declining balance method of depreciation. 4. Prepare the journal entry to record depreciation for the first year only. Part B: Assume that the company chose the straight line method of depreciation and depreciation was recorded up to December 31, 2019. If the asset was sold afterwards on January 1, 2020 for $125,000, prepare the journal entry to record this asset sale

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