E10-15 Papillon Knits is a catalog merchant in France similar to L. L. Bean and Lands' End in the United States. The company's assets consist mainly of inventory, a warehouse, and automated shipping equipment. Assume that early in year 1. Papillon purchased equipment at a cost of $4.5 million francs (F4.5 million). Management expects the equipment to remain in service five years. Because the equipment is so specialized, estimated residual value is negligible. Papillon uses the straight-line depreciation method. Through an accounting error. Papillon accidentally expensed the entire cost of the equipment at the time of purchase. The company is family-owned and operated as a partnership, so it pays no income tax. Required Prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the five-year life of the equipment. 1. Total current assets 2. Equipment, net 3. Net income