As a junior accountant at Reflexive Aerobic, a store that sells exercise and aerobic equipment in your neighbourhood, you were told by the senior accountant to demonstrate the differences in depreciation expense calculation if the company considers adopting the following methods of depreciation measurement: straight-line, units-of-production (UOP) and double-declining method.

 You were given the following information: 

i) The company purchase a store-front cashier system on January 2019, for $52, 500. The expected useful life of the cashier system is 6 years or 100,000 number of transactions. It has a salvage value of $8,000.

 a) Calculate the 

1) annual depreciation expense, 

2) accumulated depreciation and

 3) the cashier’s carrying value as at December 2022 using the following depreciation methods:

 i) Straight-line

 ii) Unit-of-production (UOP) and,

 iii) Double-declining method.

 b) What is an asset’s impairment? Explain in your own words about when a company should perform an asset’s impairment on its carrying value on the balance sheet.