On March 12, 2016, Shoreham, Inc. acquired melting equipment for AED 45,600. The estimated life of the equipment is 6 years, with an estimated residual value of AED 2,400. (10 Points) 1. If Shoreham, Inc. uses straight-line depreciation with the half-year convention. What is the book value of the equipment at December 31, 2017? (2 marks) 2. If they use a double-declining-balance depreciation method with half-year convention. What is the book value of the equipment at December 31, 2017? (2 marks) 3. They also sold a delivery truck for cash of AED 8,680. The original cost of the truck was AED 33,600, and a loss of 5,320 was recognized on the sale. What was the accumulated depreciation at the date of sale? (2 marks) 4. Shoreham, Inc. also bought a rival company, Seaham Inc. for AED 2,700,000 when the fair market value of its assets were just AED 2,400,000. 4a. Why did they pay AED 300,000 over the fair market value? (2 marks) 4b. How would this extra amount be recorded in Shoreham's accounts? (2 marks) Paragraph B