A CAPCHSC ICICI SO PO units produced was 71,000 in 2016 and 118,600 in 2017. (d) In this situation, what factors should the company consider in determining which depreciation method it should use? ciation answer 2) AP E9-5 On April 22, 2016, Sandstone Enterprises purchased equipment for $129,200. The company expects to use the equipment for 12,000 working hours during its four-year life and that it will have a residual value of $14,000, Sandstone has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2016; 2,800 hours in 2017; 3,700 hours in 2018; 2,700 hours in 2019; and 1,100 hours in 2020, Instructions (a) Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. straight-line 2. double diminishing-balance, and 3. units-of-production. (b) Which method results in the lowest profit over the life of the asset? (C) Which method results in the least cash used for depreciation over the life of the asset? ciation and LO 3) AP E9-6 Bisor Company has a December 31 year end and uses straight-line depreciation for all property, plant, and equipment. On July 1, 2015, the company purchased equipment for $500,000. The equipment had an expected use- ful life of 10 years and no residual value. The company uses the nearest month method for partial year depreciation On December 31, 2016, after recording annual depreciation, Bisor reviewed its equipment for possible impairment. Bisor determined that the equipment has a recoverable amount of $325,000. It is not known if the recoverable amount will increase or decrease in the future, Instructions (a) Prepare journal entries to record the purchase of the asset on July 1, 2015, and to record depreciation expense on December 31, 2015, and December 31, 2016. (b) Determine if there is an impairment loss at December 31, 2016, and if there is, prepare a journal entry to