Exercise 11-12 Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased a lathe on June 30, 2014 at a cost of $105,000. The residual value of the lathe was estimated to be $9,000 at the end of a five-year life. The lathe was sold on March 31, 2018. for $27,000. Howarth uses the straight line depreciation method for all of its plant and equipment. Partial year depreciation is calculated based on the number of months the asset is in service Required: 1. Prepare a schedule to calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that Howarth had instead used the sum-ofthe-years' digits depreciation method, prepare the journal entry to record the sale Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule to calculate the gain or loss on the sale. on sale of fathe Required 2 >