1). Myles Construction Company purchased a new crane for $375,500 at the beginning of year 1 . The crane has an estimated residual value of $25,000 and an estimated useful life of six years. The crane is expected to last 20,000 hours. It was used 3,800 hours in year 1;4,000 hours in year 2;4,500 hours in year 3;3,500 hours in year 4;2,200 hours in year 5; and 2,000 hours in year 6. Required 1. Compute the annual depreciation and carrying value for the new crane for each of the six years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declining-balance. 2. If the crane is sold for $170,000 after year 3 , what would be the amount of gain or loss under each method? 3. Do the three methods differ in their effect on the company's profitability? Do they differ in their effect on the company's operating cash flows? Explain. Task 2) The inventory, purchases, and sales of Product CAT for March, April and May are listed below. The company closes its books at the end of each month. It uses the perpetual inventory system. Required 1. Compute the cost of the ending inventory on March 31 , April 30 , May 31 using the averagecost method. In addition, determine cost of goods sold for March, April and May. Round unit costs to cents and totals to dollars. 2. Compute the cost of the ending inventory on March 31, April 30 and May 31 using the FIFO method. Also determine cost of goods sold for March, April and May. 3. Do the cash flows from operations for March, April and May differ depending on which inventory costing method is used-average-cost, FIFO, or LIFO? Explain