my d9=1.question3 plz finish all part

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9:35 Safari Page Question 3 (Total 10 marks) ABC Engineering Co. Ltd. has decided to purchase a new equipment to replace the old one. The purchase price of the new equipment is $ (350,000 + D8 x 1,000). After the trade-in of its old equipment (worth $10,000). The remaining balance can be financed by the supplier at 12% APR and payments over 48 months. Compounding of interest is monthly. Alternatively, a further $ (30,000 +D8 x 1,000) discount is offered in addition to the trade-in of its old equipment if the remaining balance is financed at an APR of 15% over 48 months. (a) Based on the monthly payment, which financing option should ABC Engineering Co. Ltd. select? (b) What the difference in the total interest paid between these two financing options? Answer (a) (b) II Page 5 Question 4 [Total 15 marks] ABC Systems Co. Ltd. is purchasing a new equipment for its service center. The table below lists the relevant cost items for this purchase. The operating expenses for the new equipment are $10,000 per year, and the useful life of the equipment is expected to be 5 years. The salvage value (SV) of the equipment at EOY 5 is equal to 25% of the hardware cost. Cost Hardware $160,000 + D8 x1,000 $15,000 + D8 x 100 Training Installation Shipping & Handling $12,000 + D8 x 100 $3,000 + D8 x 100 (a) What is the cost basis for this equipment? (b) What is the book value (BV) of the equipment at EOY 4 if the straight line (SL) depreciation method is used? (c) What is the depreciation expense for Year 4 if the 150% declining balance (DB) depreciation method is used