Q1. Equipment costing $400,000 has an estimated useful life of five years and a residual value of $50,000. Record depreciation expense, accumulated depreciation, and book value in the chart below for each year of the five-year useful life using the straight-line method of depreciation.

Q2. Record amounts reported on the income statement and the balance sheet over a six-year period in the chart below.

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Book Value Depreciation Accumulated | SL Expense Depreciation | (Acquisition Cost -Acc Dep = Book Value) Year 1 Year 2 Year 3 Year 4 Year 5 Total 400,000-70,000- 400,000 140,000- 400.000-210.000 = 400.000-280.000 = 400,000 350,000- 140,000 Year l Year 2 Year 3 Year 4 Year 5 Year 6 Income Statement Depreciation Exp Balance Sheet Acquisition Cost Accumulated Dep Book Value S400,000 140,000 $260,000