Gandolfi Construction Co. purchased a used CAT 336DL earth mover at a cost of $325,000 in January 2013. The companys estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $75,000.

Required:
a.	Using straight-line depreciation, calculate the depreciation expense to be recognized for 2013, the first year of the equipments life, and calculate the equipments net book value at December 31, 2015, after the third year of the equipments life.
	Formula for book value??