2: 30% of Exam A construction company purchases machinery for $10m on January 1st. The machinery is expected to last 3 years and have no residual value. The company is planning to depreciate it on an accelerated basis of $5m in Year 1, $3m in Year 2, $2m in Year 3. Questions: Part 1: What amount of depreciation expense would be charged against Year 2's income? What would be the total accumulated depreciation in Year 2? Part 2: How would Year 1 to 3 depreciation expense change if the company used straight-line method instead? Part 3: Which method (straight line versus accelerated) results in higher net income in Year 1? Does this change in Year 3? If so, how? Part 4: What should justify the choice of accelerated depreciation over straight-line? Provide an example to illustrate. What key accounting principle/s is at work and why