Question 2. (15%) Azure Bottle Coffee (ABC) purchased equipment on January 1, 2017, for $380,000. ABC spent an additional $20,000 to get the asset ready for its intended use. The expected life of this equipment was initially four years. The equipment has a residual value of $60,000. a. Assume that ABC uses the straight-line method for depreciation. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the equipment's life. If necessary, round any depreciation calculations to the nearest dollar. Year Annual Depreciation 2017 $ 2018 $ 2019 $ 2020 $ b. c. Accumulated Depreciation $ $ $ $ Book Value (End of Fiscal Year) $ $ $ $ Prepare the journal entry to record depreciation expense for 2017. Assume that on January 1, 2018 ABC revised the expected life of the equipment from four years to three years. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the remainder of the equipment's life. Year Annual Depreciation 2018 2019 $ $ Accumulated Depreciation $ $ Book Value (End of Fiscal Year) $ $ d. e. f. g. Prepare the journal entry to record depreciation expense for 2018. On January 1, 2019, ABC sells the equipment for $160,000. Prepare the journal entry to record the sale. What would the journal entry to record the sale of equipment for $160,000 on January 1, 2019, have been if ABC had kept its initial estimated useful life of four years. Comparing your answer to e. and f., briefly explain whether and how the statement of cash flows are affected by the change in estimated useful life. No calculations needed.