Disposal of fixed asset Equipment acquired on January 6 at a cost of $425,000 has an estimated useful life of 20 years and an estimated residual value of $35,000 a. What was the annual amount of depreciation for Years 1-3 using the straight line method of depreciation? Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4