2. Two firms purchase a similar piece of equipment for $2,500 at the beginning of year 1 . The equipment has an estimated useful life of 4 years and estimated residual value of $100. Firm A chooses to depreciate the asset straight-line while Firm B uses the double-declining balance method. Partial income statements for the two firms are provided on the next page. a) Prepare a depreciation schedule for each of the two firms. Firm A: Straight-line depreciation Firm B: Double-Declining Balance b) Additional information about the two firms is provided in the template below i. Complete the template assuming the tax rate for both firms is 21%. ii. Compare the trend in gross profit margins for the two firms over the four years. ii. Compare the trend in net profit margins for the two firms. How does the trend in net profit margin for each firm compare to the trend in gross profit margin for the same firm