Depreciation DB \#9 (Wk 12) Assume you have just accepted a job that requires you to do a lot driving. Because your current car is on its "last leg," you have decided to purchase an automobile. You estimate that you will drive 20,000 miles each year. Because you don't like to deal with major car repairs, you will trade in the car when it reaches 60,000 miles (you will hold the car no more than three years). You have found two cars that you are considering. One is a new car(A), and you can purchase it for $27,000; it has a $6,000 residual value. The other is a latemodel used car (B). The used car has 20,000 miles on it, but it is in excellent condition. The price of this used car is $12,000 and has a $2,000 residual value. Using the information presented (do not take into consideration which car is cheaper or the car's residual valun that is not the answer): Done 1. What would be your depreciation cost per year for each car (using straight-line method)? Show your calculation in your response. 2. Which car would give you the highest deduction annually? Would it be A or B? 3. What would be the entry to record the first year's depreciation for one of the cars (either A or B)? Show the entry. You have three separate answers you must include: (1) the depreciation for both cars, (2) which car would provide the higher deduction annually), and (3) the entry for one of the car's annual depreciation. IMPORTANT: Your DB post must be made no later than 11:59p on the Sunday of each related week, except for the last week of the semester when the due date is 11:59p on Saturday. LATE posts will NOT be accepted and you will receive a zero for your grade