Paragraph 17 Styles 4. Less 4-Disposals Question (20 Marks, Show calculations) 1. Lui Company purchased equipment in 2007 for $80,000 and estimated an $8,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2013, there was $50,400 in the Accumulated Depreciation account for this equipment using the straight- line method of depreciation. On March 31, 2014, the equipment was sold for $21,000. Instructions Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2014. (The depreciation for 2014 has not yet been recorded.) Show any necessary calculations below each entry. (6 Marks) 2. Gagne Company sold a delivery truck for $11,000. The delivery truck originally cost $25,000 in 2010 and $6,000 was spent on a major overhaul in 2013 (charged to Delivery Truck account). Accumulated Depreciation on the delivery truck to the date of disposal was $20,000. (Fully updated accumulated depreciation number.) Instructions Prepare the appropriate journal entry to record the disposition of the delivery truck. (3 Marks)