Suppose a company purchases a piece of equipment for $80,000 at the beginning of the year. The equipment is estimated to have a useful life of five years and no residual value. Using the depreciation method you learned about in this chapter, what is the depreciation expense for the first year of the asset’s life? What is the book value of the equipment at the end of the first year? What is the book value of the equipment at the end of the second year?