Learning Unit 5 Questions and Problems 1. Chapter 5. Objective Questions 3.4.5 and 6. II. A medical clinic is considering investing in a new diagnostic piece of equipment that will allow for a new in-house line of testing. The expected increase in patient volumes is expected to be 4,000 patients with an expected reimbursement rate of $172 per patient. The cost of the new equipment is $880,000 with an expected lifetime for the service of 5 years. At the end of the five years, the expected salvage value of the equipment is $50.000. The servicing of the equipment will increase service cost by 598.000 over the five year life of the instrument. It will also add an expected 564,000 in labor costs and an increase in testing supply kits of $81.500. Using both the straight line method as well as the sum of years.digits (SYD) method, what amounts would the asset be depreciated for each of the five years? o What is the key difference between these two methods? o Why might one choose a straight line method for depreciation the SYD method