Question #4: Component Depreciation: A large piece of equipment acquired on 1 January 2017 by Knight Company has four major components for depreciation. Details regarding each component are given in the schedule below: Component Cost Estimated Residual Estimated Life Value (Years) 10 $250,000 100,000 $25,000 5 190,000 26,000 40,000 1,500 15 D Required: 1. Calculate the depreciation for 2017. Use the straight-line method, and only one accumulated depreciation account for all components. Give the entry to record depreciation after one full year of use. At the end of 2018, it was necessary to replace component B, which was sold for $36,000. The replacement component cost $125,000 and will have an estimated residual value of $15,000 at the end of its estimated five-year useful life. Record the disposal and substitution, which was a cash acquisition. 2. 3. Assume that the original machine was depreciated as a whole on a straight-line basis over 15 years with no residual value, and not broken into components. Provide the requested information in requirement 1