Question 3 (20 Marks) F Co. purchased equipment on January 25, 2020, for $64,000. Its financial year ends on December 31 each year. The expected useful life of the equipment is 10 years, and its residual value is $4,000. Required: a) Compute the annual depreciation expense at the end of 2020 and 2021 using double declining balance method and the half-year convention. Show the calculations. (6 marks) 3 b) On December 31, 2021, F Co. sold the equipment for $37,500 cash. Record journal entries for the sale of the equipment at year end. (Transaction descriptions are not required.) (5 marks) c) In preparing this year's financial statements, management of F Co. decided to revise the estimated useful life from 10 years to 15 years. Briefly explain how this revision in estimated life is likely to affect this year's Profit. (3 marks) d) F Co. is a small company sells luxury jewelry to customers. The Management believes that periodic inventory system is suitable for a small company like F Co., because the system takes less time to prepare accounting records. Do you agree? Explain. (6 marks)