On April 2, Year 1, Victor Incorporated acquired a new piece of filtering equipment. The cost of the equipment was $360,000 with a residual value of $20,000 at the end of its estimated useful lifetime of 8 years. Victor uses a calendar year-end for financial reporting. Assume that in its financial statements, Victor uses straight-line depreciation and the half-year convention. Depreciation recognized on this equipment in Year 1 and Year 2 will be: Multiple Choice $31,875 in Yow 1 and $39,375 in Year 2. $20,000 in Year 1 and 542,500 in Year 2. $45,000 in Year 1 and $39.375 in Year 2 $21,250 in Year 1 and 542.500 in Year 2