XYZ Company purchased equipment for $60,000. The equipment has a useful life of 5 years and no salvage value. Calculate the annual depreciation expense using the straight-line method. Requirements: a. Determine the annual depreciation expense. b. Prepare the journal entry to record the depreciation expense for the first year. c. Determine the book value of the equipment at the end of the second year. d. Analyze the impact of depreciation on the income statement and balance sheet.