Comparing Depreciation Methods Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on January 1 of the curren fiscal year, which ends on December 31, 20Y5. 1. Using the integrated financial statement framework, indicate the effects (increase or decrease) of using doubledeclining-balance depreciation rather than straightline depreciation on accumulated depreciation, retained earnings, and depreciation expense at the beginning of the asset's useful life. Select No Effect in all cells, including amount cells, where applicable. Balance Sheet Assets Liabilities Stockholders' Equity V = V + V v v v Statement of Cash Flows Income Statement 2. Indicate the effects (increase, decrease, or no effect) of using doubledecliningbalance depreciation rather than straightline depreciation on the liquidity metric free cash flow and profitability metric asset turnover at the beginning of the asset's useful life. Liquidity Profitability Free Cash Flow Asset Turnover Double-decliningbalance depreciation method V V