Accounting for Equipment On January 2. Lev Company purchases equipment for use in fabrication of a part for one of its key products. The equipment costs $190,000, and its estimated useful ife is five years, after which it is expected to be sold for $20,000. Required a. Compute depreciation expense for each year of the equipment's useful life for each of the following depreciation methods 1.Straightne Year 1 34,000 Year 2 34,000 $ 2. Double declining balance s 76,000 1 45,000 Year 3 34000 27.300 Year 4 34000 154150 Year 5 34.000 46.240 b. Assume that Lev Company uses the straight line depreciation method. Show the effects of these entries on the balance sheet and the income statement using the financial statement effects template Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: indicate a decrease in an account category by including a negative sign with the amount Transaction Purchased equipment Cash Asset Recorded annual deprecation Noncash Income Statement Centra Assets Liabilities Contrib Capital. Earned Capital Revenues c. Show how the equipment is reported on Levs balance sheet at the end of the third year assuming straight ane depreciation Note: Do not use a negative sign with any of your answers 0 Required a Compute depreciation expense for each year of the equipment's useful ife for each of the following depreciation methods 1.Straight-line Year 1 $ 34.000 $ Year 2 34,000 2. Double-declining balance 76.000 45.000 Year 3 34000 27.300s Year 4 34,000 $1 154150 $ Year 5 34,000 46.240 b. Assume that Lev Company uses the straight-line deprecation method. Show the effects of these entries on the balance sheet and the income statement using the financial statement effects template Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note: Indicate a decrease in an account category by including a negative sign with the amount. Noncash Assets Centra Assets 0 0 Income Statement Contrib Liabilities + Capital Earned Capital Net Revenues Expenses Income 0 0 c. Show how the equipment is reported on Lev's balance sheet at the end of the third year assuming straight line depreciation Note: Do not use a negative sign with any of your answers Equipment o Les accumulated depreciation Equipment net Please answer all parts of the question Accum Dep' Cash Dep' expence Equipment Cain on equipment disposal Loss on equipment disposal Retained earnings