Question 2: On Jan. 1, 2020 Jeddah Company purchased equipment at a cash price of $23,000. The useful life (productive life) of the equipment is five years. The salvage value is $3,000 Required: 1-Prepare the journal entry to record the costs paid at Jan. 1, 2020. 2- Show the effect on the statement of financial position (balance sheet) at Jan. 1, 2020. 3-Compute the annual depreciation of the equipment (use Straight-line method). 4-Prepare the journal entry to record the depreciation at Dec. 31, 2020. 5- Show the effect on the statement of income statement and financial position (balance sheet) at Dec. 31, 2014.