Problem $6-3$

$15$ points

Major Inc. began operations when it acquired

$$450,000$ cash from the issue of common stock

on January $1,2020.$ The cash acquired was immediately used to purchase equipment for

$$450,000$

that had a

$$90,000$

salvage value and an expected useful life of four years. The equipment was

used to produce the following revenue stream $($assume all revenue transactions are for cash$).$ At the

beginning of the fifth year, the equipment was sold for

$$45,000$

cash.

Major Inc. uses straight$-$line depreciation. Assume depreciation is the only expense to record.

REQUIRED

Prepare income statements, balance sheets, and statements of cash flows for each of the five years.