The company purchased equipment for $500,000 and they estimated the residual value to be $100,000 at the end of the estimated 8 years or 20,000 hours service life. For Straight-line: 1. Determine Book value at the end of year 3 $ For Double declining balance: 2. Determine depreciation expense for year 2 $ 3. Determine depreciation expense for year 3 $ For Activity based: Year Hours used 1 2,500 2 2,525 3 2,600 4 2,525 5 2,475 6 2,550 7 2,450 8 2,500 4. Determine depreciation expense for year 3 $ 5. Determine Book value at the end of year 3 $