During 2009, Starbucks purchased fixed assets costing approximately $450 million. Assume that the company purchased the assets at the beginning of the year, uses straight-line depreciation, and normally depreciates its equipment over three years.
a. Compute the book value of the equipment at the end of each of the three years.
b. Complete a chart like the following
c. What is the purpose of the adjustments at the end of each period?