Madison company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million.At December 31, Year 1, Madison gathered the following information related to this asset:

Carrying amount (net of accum depreciation)

10 million

Fair value of the asset (net selling price)

7.5 million

Sum of future cash flows from use of the asset

10 million

Present value of future cash flows from use of the asset

8 million

Remaining useful life of the asset

5 years

a.Determine the difference in income, total assets, and total stockholders equity for the period of years 1-6 under the two different sets of accounting rules.

I am struggling to figure this one out. I am looking for guidance on year 1 and year 2 and then I will be able to figure out year 3-6 using that experience