1.- On December 31st, 2011, Carlos Inc. acquired a new research quantum computer. The cost of the computer was 6,000.000 with a residual value of 1,000,000 at the end of its estimated useful lifetime of 4 years. Instructions a. Prepare a complete depreciation schedule, beginning with calendar year 2011, under each of the methods listed below (with fractional years rounded to the nearest whole month): 1. Straight-line 2. 200 percent declining-balance 3. 150 percent declining-balance b. Assume that Carlos Inc. sells the asset on December 31, 2014, for 2,000,000 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a. c. Which of the methods would you advice to use and why? |