To solve the questions related to the provided image, we will follow the instructions step by step:

1(a) Compute the equipment’s book value at the end of its first year:

• Depreciation Method: Straight-line depreciation.
• Initial Assumptions:
  1. Total useful life of the equipment.
  2. Salvage value.
  3. Cost of the equipment.

If the specific values (cost of equipment, initial useful life, and salvage value) are not visible or provided, you need to let me know these details.

1(b) Compute the depreciation for the second year with revised useful life:

• At the beginning of the second year, we assume:
  1. Only two years of remaining useful life exist.
  2. Book value at the start of Year 2 serves as the new depreciable base.

Formula for straight-line depreciation:

$\text{Annual Depreciation} = \frac{\text{Book Value at Start of Year 2} - \text{Salvage Value}}{\text{Remaining Useful Life (2 years)}}$

Part 2: Record the sale of equipment at the end of its useful life:

Two scenarios are provided:

• Case A: Sale for $12,000.
• Case B: Sale for $6,000.

The journal entry for the sale depends on:

1. Book Value of the equipment at the end of its useful life.
2. Sale Proceeds.

If Gain or Loss on the sale is calculated as:

$\text{Gain or Loss} = \text{Sale Proceeds} - \text{Book Value at the End of Useful Life}$

Next Steps:

1. Provide the initial cost of the equipment and the salvage value to compute exact values.
2. Let me know if you want me to proceed with generic assumptions.

Would you like me to proceed with sample assumptions, or do you have specific cost and salvage value details? Here are five questions to expand your understanding:

1. What was the initial useful life of the equipment before revision?
2. What was the original cost of the equipment?
3. What is the salvage value of the equipment in both scenarios?
4. Should I demonstrate how the journal entry is recorded?
5. Are there any production-related depreciation factors to include?

Tip: When calculating straight-line depreciation, always adjust the base if the useful life changes midway.