QUESTION 1 Mark's Repair Service uses the straight-line method of depreciation. The company's fiscal year end is December 31 The following transactions and events occurred during the first three years 2016 Purchased equipment from the Equipment Center for $5.500 cash plus sales tax of $305, and shipping costs of $250 Incurred ordinary repairs on computer of $240 Recorded 2016 depreciation on the basis of a four-year life and estimated salvage value of $455 July Nov Dec 31 2017 Dec. 31 Recorded 2017 depreciation. Questions Prepare the necessary entries /Cr. Cash 2016 July 1: Dr. Equipment Nov 3: Dr. Maintenance and Repairs Expense Dec 31 Dr Depreciation expense Cr Cash $ / Cr $700 Dec 31 Dr. Depreciation expense 2017 17ci Accumulated Depreciation cq2> A plant asset acquired on January 1, 2017, at a cost of $800,000 has an estimated useful life of 10 years The salvage value is estimated to be $50,000 at the end of the asset's useful life Question Determine the depreciation expense for the first tho years using the straight-line method Year 1: S Year 2 S