Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios:

a. Astrom Ltd. purchased a piece of equipment on January 1, 2020, for $48,800. At the time, management determined that the equipment would have a four-year useful life and a residual value of $4,400. Astrom uses the straight-line depreciation method for its equipment, and the company has a December 31 year end.

b. Assume the same facts as in part “a” except that Astrom uses the double-diminishing-balance method for depreciation of equipment.

c. Assume the same facts as in part “a” except that Astrom purchased the equipment on May 12 rather than on January 1. Also assume that Astrom sold the equipment on September 25, 2022, for $19,900.