P$8-29.$ Depreciation$-$declining$-$balance method $($L$.$O$.8-2)($Easy $-\backslash (\backslash$mathbf$\{15\}\backslash )$ minutes$)$ The table below itemizes several assets. The company uses the double$-$decliningbalance method to determine depreciation expense, which means that the rate used will be $2$ divided by useful life. For example, if estimated useful life is eight years, the declining balance rate would be $\backslash (2\backslash$div $8\backslash ),$ or $\backslash (25\backslash \%\backslash ).$ Assume in all cases that the asset's first and last years are full years, and that all assumptions and estimates used to derive depreciation remain unchanged throughout the assets' useful lives.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Item & Cost & Estimated useful life & Estimated residual value $\backslash \backslash$

$\backslash$hline Lathe & $\backslash [$

$\backslash$begin$\{$array$\}\{$c$\}$

$\backslash$$ $\backslash \backslash$

$4,000,000$

$\backslash$end$\{$array$\}$

$\backslash ]$ & $7$ years & $\backslash$$ $200,000\backslash \backslash$

$\backslash$hline Building & $25,000,000$ & $20$ years & $500,000\backslash \backslash$

$\backslash$hline Earth$-$moving truck & $700,000$ & $6$ years & $70,000\backslash \backslash$

$\backslash$hline Electric turbine & $7,000,000$ & $10$ years & $800,000\backslash \backslash$

$\backslash$hline Stamping machine & $10,000,000$ & $9$ years & $3,000,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required:

a$.$ Calculate depreciation expense for the first, third, fifth, and last years using the double$-$declining$-$balance method.

b$.$ Assume in all cases the assets are sold at the end of their estimated useful lives at their estimated residual value. Prepare the journal entry to record their disposal.