Chapter 9-Fixed Assets and Depreciation Office equipme nt was acquired at the beginning of the year at a cost of $50,000 that has an estimated residual value of $5,000 and an estimated useful life of five years. The company issued a notes payable to acquire the equipment R1: Determine the following (a) depreciable cost (b) annual straight-line depreciation expense (c) Net Book Value (Cost-Accumulated Depreciation) R2: Record the journal entries Credit Debit Account Record the purchase of the equipment: Record the annual depreciation expense