Problem 4 (20 points) Company purchased a new equipment on January 1 for $32,500 plus $4,500 in sales tax. Company paid $7,000 cash on the purchase, with the remaining on credit at 5 percent interest due in nine months. On December 31 (the end of the accounting period), Company recorded depreciation on the equipment using the straight-line method with an estiamted useful life of 4 years and an estimated residual value of $2,500. (a) Compute the acquisition cost of the equipment. (b) Compute the depreciation expense to be reported for Year 1 and prepare the adjusting entry to record the depreciation expense