1.	For each of the generally accepted depreciation methods, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
2.	Griffin reports to stockholders and creditors in the financial statements using the depreciation method that maximizes reported income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income tax payments in those early years. Consider the first year Griffin Co. uses the computer. Identify the depreciation methods that meet Griffin's objectives, assuming the income tax authorities permit the use of any of the methods.
3.	Net cash provided by operations before income tax is $150,000 for the computer's first year. The income tax rate is 32%. For the two depreciation methods identified in requirement 2, compare the net income and net cash provided by operations (cash flow). Show which method gives the net income advantage and which method gives the cash flow advantage.

On January 7, 2015 Griffin O paid $264,000 o' a compul r sys n' n addi on o re basic purchase price, u e culmpany pa se up ee ors 000 sa s la c S7 000 and $20,000 ora s e a pla orm on which o pla e lhe urn le. Griffin's rna agen en estimates that the computer will remain in service for five years and have a residual value of $30,000. The computer will process 35,000 documents the first year, with annual processing decreasing by 2 500 documents during each of the next four years (that is, nd d 32,500 documents in 2017, 30,000 documents in 2018, and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units of production, Read the equirements Requirement 1. For each of the generally accepted depreciation methods, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Befare completing the straight-line deprecistion schedule, ceculete the straignt-line depreciation rata. First select the labels, enter the amounts and compute the rate. (Round the rate to two decimal places) Uselul lifs, irn years (SI ) Depreciation rate Complete the streight-line depreciation schedule. Begin by filling out the schedule through 201, and then complete the schedule by enternng the amounts through 2020 (Enter the rete to two decimal places.) Straight-Line Depreciation Schedule Depreciable Yearly Accumulated Date Cost Rate Cost Expense Depreclation Book Value 7, 2016 lecember 31, 2016 r 31, 2017 On January 7, 2015 Griffin O paid $264,000 o' a compul r sys n' n addi on o re basic purchase price, u e culmpany pa se up ee ors 000 sa s la c S7 000 and $20,000 ora s e a pla orm on which o pla e lhe urn le. Griffin's rna agen en estimates that the computer will remain in service for five years and have a residual value of $30,000. The computer will process 35,000 documents the first year, with annual processing decreasing by 2 500 documents during each of the next four years (that is, nd d 32,500 documents in 2017, 30,000 documents in 2018, and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units of production, Read the equirements Requirement 1. For each of the generally accepted depreciation methods, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Befare completing the straight-line deprecistion schedule, ceculete the straignt-line depreciation rata. First select the labels, enter the amounts and compute the rate. (Round the rate to two decimal places) Uselul lifs, irn years (SI ) Depreciation rate Complete the streight-line depreciation schedule. Begin by filling out the schedule through 201, and then complete the schedule by enternng the amounts through 2020 (Enter the rete to two decimal places.) Straight-Line Depreciation Schedule Depreciable Yearly Accumulated Date Cost Rate Cost Expense Depreclation Book Value 7, 2016 lecember 31, 2016 r 31, 2017