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Q2. Company ABC bought an equipment for $20,000 in 2015, with useful life of 5 years $5,000 residual value amortized using straight-line method. Assume ABC

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Q2. Company ABC bought an equipment for $20,000 in 2015, with useful life of 5 years $5,000 residual value amortized using straight-line method. Assume ABC has $3,000 income before taxes for each of the year and 30% tax rate a) Prepare a table to illustrate the differences accounting income vs taxable income caused by this equipment. b) Assume, this equipment was sold at the end of 2017 for $11,000. Please prepare JEs for 2015, 2016 and 2017

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