Bombardier Inc. (Company) purchased new industrial equipment on April 1, 20X1, at a cost of $172,000. Based on the Company's internal plans and budgets, it plans to use the equipment for 4 years or 10.000 machine hours and ultimately sell it for its estimated residual value of S16,000. The equipment is advertised to be durable, with a productive life of 5-7 years, The Company calculates depreciation expense to the nearest whole month. Total sales revenue in 20x2 was $800,000. The Company has a December 31" year-end. Actual machine usage was: 1,500 hours in 20X1 and 2.200 hours in 20x2. Required: a) An article asserts that "Bombardier Inc. is not paying their fair share of tax...for example, they can use different depreciation methods and useful life estimates to increase depreciation expense, lower net income and therefore lower taxes payable." Do you agree with this assertion? Explain. (2 marks) b) Explain the relationship, if any, between depreciation expense of an asset and a subsequent gain or loss that may arise on the disposition of that asset. Be specific. Ensure to support your answer. (2 marks) c) Calculate the 20x2 depreciation expense for the equipment under each of the following depreciation methods: (4.5 marks) straight-line diminishing balance (using a 50% rate) units-of-production d) In 20X2, explain which depreciation method results in the lowest earnings-per-share (EPS). (2 marks) Accessibility, Investigate Focus