2. Millenium bought a custom-made piece of equipment for $36,000. This equipment has a use¬

ful life of 6 years. Millenium depreciates equipment using the straight-line method. “Since the equipment is custom-made, it will have no resale value. Therefore, it shouldn’t be depre¬

ciated but instead should be expensed immediately,” argues Scott. “Besides, it provides for lower net income.”