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Question -2 An equipment which cost $400,000 is acquired on August 1, 2015. Its estimated residual value is $40,000 and its expected life is 5 years. Instructions Prepare the depreciation schedule for the equipment by using Sum-of-the-years' digits methods. Solution year Depreciation expense Accumulated depreciation Book value 2015 2016 2017 2018 2019 2020