1. In the early January 2020, a cell phone operator acquired an iPhone 13 pro at a cost of CAD $4,200. The estimated service life of the equipment was 4 years and the residual value of the phone is CAD $200. Early in 2023, the cell phone operator revised the estimated life of the phone to a total of 2 years and a residual value of CAD $0. a) Using the straight-line method, calculate the depreciation rate for the first 4 useful life years of the phone? (5 marks) b) Using the straight-line method, calculate the depreciation expense on the iPhone for the year ended December 31, 2023? (5 marks) c) Using the straight-line method, develop a depreciation schedule from the year 2020 to 2025? (18 marks). 2. Mr. Kumar bought an equipment for $160,000 on September 5, 2020. The estimated life of the equipment is 5 years with a residual value of $40,000. Kumar's year-end is Dec 31. a) Calculate using the straight-line method the book value, Depreciation expense and accumulated depreciation from 2020 to 2025? (18 marks) b) Calculate using the double declining method the book value, Depreciation expense and accumulated depreciation from 2020 to 2025? (18 marks) 3. Classify the following expenditures as repairs and maintenance or betterments: a. The monthly replacement cost of filters on an air conditioning system, $ 120 (2 marks) ACE b. The cost of replacing a compressor for an ice cream company's refrigeration system that extends the estimated life of the system by 4 years, $200 (2 marks) c. The cost of annual tune-ups for delivery trucks, $200 (2 marks)