35 On April 2, Year 1, Mini, Incorporated acquired a new piece of filtering equipment for $160,000. The equipment's estimated useful life at the time of purchase was four years, and its residual value was $20,000. Mini uses a calendar year-end for financial reporting. Refer to the information above. Assume that in its financial statements, Mini uses the straight-line method, with fractional years rounded to the nearest whole month. Depreciation recognized on this equipment in Year 1 and Year 2 will be: Multiple Choice $23,333 in Year 1 and $35,000 in Year 2. $40,000 in Year 1 and $30,000 in Year 2. $20,000 in Year 1 and $35,000 in Year 2. $26,250 in Year 1 and $35,000 in Year 2.

On April 2, Year 1, Mini, Incorporated acquired a new piece of filtering equipment for $160,000. The equipment's estimated useful life at the time of purchase was four years, and its residual value was $20,000. Minl uses a calendar year-end for financial reporting. Refer to the information above. Assume that in its financial statements, Mini uses the straight-line method, with froctional years rounded to the nearest whole month. Depreciation recognized on this equipment in Year 1 and Year 2 will be: Multiple Choice $23.333 in Year 1 and $35,000 in rear 2 $40,000 in Year 1 and $30,000 in Year 2. $20,000 in Year 1 and $35,000 in Year 2. $26,250 in Year 1 and $35,000 in Year 2