Knowledge Check 01 On January 1, Year 1, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of an estimated four- year service life is expected to be $4,000. The company uses the straight-line method. For how much would each item below be reported at the end of Year 3? 1. Depreciation expense 2. Accumulated depreciation 3. Book value $36,000 16,000