On April 2, Year 1, Victor, Incorporated acquired a new piece of filtering equipment. The cost of the equipment was $500,000 with a residual value of $30,000 at the end of its estimated useful lifetime of 5 years. Victor uses a calendar year-end for financial reporting. Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this equipment in Year 1 and Year 2 will be: Multiple Choice $30,000 in Year 1 and $94,000 in Year 2. $100,000 in Year 1 and $100,000 in Year 2. $70,500 in Year 1 and $94,000 in Year 2. $94,000 in Year 1 and $94,000 in Year 2.