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Chapter 7 In class assignment-Answers to be submitted in Canvas M Corporation purchased equipment for $525,000. Residual value at the end of the estimated 6 years or 100,000 hours service life is expected to be $70,000. Using Straight-line depreciation, determine: 1. Book value at the end of year 3 $ Using 180% declining balance depreciation, determine: 2. Depreciation expense for year 2 $ 3. Depreciation expense for year 3 $ 1 Year Hours used 1 17,000 2 17,100 3 16,500 4 16,900 5 16,300 6 16,200 Using Activity based depreciation, determine: 4. Depreciation expense for year 3 $ 5. Book value at the end of year 3 $