Question #1 (20 Points): A construction company purchased an excavator for $300,000 to avoid renting expenses. The company would like to record the excavator's depreciation using 150% declining depreciation method over a useful life of 4 years. a) Using the given information, fill the first two shaded columns in the table below (show calculations used for at least two rows of the table). b) If the company would like to have a book value of $10,000 at the end of the useful life, answer the following: When does the company need to switch to a straight-line model? (fill 3rd column in the table below supported with sample calculations) What is the annual book value after switching (fill the 4th column in the table below)? Year Depreciation Amount Book Value New Depreciation amount in case of switching to SL model New Book value after switching 1 2 3 4 3 Question #1 (20 Points): A construction company purchased an excavator for $300,000 to avoid renting expenses. The company would like to record the excavator's depreciation using 150% declining depreciation method over a useful life of 4 years. a) Using the given information, fill the first two shaded columns in the table below (show calculations used for at least two rows of the table). b) If the company would like to have a book value of $10,000 at the end of the useful life, answer the following: When does the company need to switch to a straight-line model? (fill 3rd column in the table below supported with sample calculations) What is the annual book value after switching (fill the 4th column in the table below)? Year Depreciation Amount Book Value New Depreciation amount in case of switching to SL model New Book value after switching 1 2 3 4 3