Chapter 9 Practice Problem On January 2, one of Home Depot's subsidiary companies purchased equipment that fabricates a key-product part. The equipment costs $95,000 and its estimated useful life is 5 years, after which it is expected to be sold for $10,000. Required: 1. Compute the depreciation expense for each year of the equipment's useful life for each of the following depreciation methods: a. Straight Line b. Double-declining balance C. Sum-of-the-years digits 2. Show how this piece of equipment would be presented in the financial statements at the end of year 3 assuming the subsidiary uses straight-line depreciation. 3. Assume the equipment is sold at the beginning of year 5 for $25,000. Prepare the journal entry to record this sale assuming the company recorded depreciation through year 4 using straight-line