Listen Redtop Co. purchased a piece of equipment this year for $300,000. Management estimates that the equipment will have a useful life of five years and no salvage value. The depreciation expense recorded in year one for tax purposes will be $72,000. The company uses the straight-line method of depreciation for reporting purposes. a. Calculate the amount of depreciation expense for reporting purposes this year (1 mark). b. What will be the net book value of the equipment reported on the balance sheet at the end of year two? (2 marks) c. Will a deferred tax asset or deferred tax liability be created, as a result of the depreciation recorded for tax and financial reporting purposes at the end of year one? (1 mark) d. What amount will be added to the deferred tax account, as a result of the depreciation timing difference in year one? (1 mark)