2. Company B purchased equipment worth 100,000$. The equipment has an estimated useful life of 5...

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2. Company B purchased equipment worth 100,000$. The equipment has an estimated useful life of 5 years with no salvage value. The accountant made the depreciation entries based on a useful life of 10 years. Given this scenario, determine the effect of this error on the financial statements for (O=Overstate; NE-No Effect; U - Understate): (20 Points) a.) Year 1. (3 points) Assets b.) Year 2. (3 points) Assets c.) Year 6. (3 points) Assets Liabilities Liabilities. Liabilities Net Income Net Income Net Income SHE SHE SHE 2. Company B purchased equipment worth 100,000$. The equipment has an estimated useful life of 5 years with no salvage value. The accountant made the depreciation entries based on a useful life of 10 years. Given this scenario, determine the effect of this error on the financial statements for (O=Overstate; NE-No Effect; U - Understate): (20 Points) a.) Year 1. (3 points) Assets b.) Year 2. (3 points) Assets c.) Year 6. (3 points) Assets Liabilities Liabilities. Liabilities Net Income Net Income Net Income SHE SHE SHE

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