Calculation problems A tractor was acquired for $6,000. It has a useful life of 5 years, and at the end of the 5 years, it's projected to have a residual value of $1,000. Compute the first year's depreciation using the straight line method. Compute the first year's depreciation using the double declining balance method. In doing a depreciation journal entry for a period's depreciation, what account do you debit and what account do you credit? Debit: Credit: Wonder Company owns an automobile that is recorded at its original cost of $15,000, and related accumulated depreciation of $10,000. They sold the automobile for $7,000 cash. Complete the following journal entry to record the sale of the automobile. Account name Debit Credit Automobile Accumulated depreciation Cash Gain or loss on sale of automobile