Ch $10$ Ex $1,3-7$ & $16-19,$ Tableau DA $10-2,$ Excel SIM $($i$)$

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The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January $1.$ The founder wants to know the implications of different depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment's first year in

$727$

operation, we are given the following Tableau Dashboard.

points

operation, we are given the following Tableau Dashboard.

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Actual & Estimated Units$-$of$-$Production

Year $2$ Production $-$ year$2$ production: $55,000$ un its

Year $3$ Production $-$ year $3$ product: $25,000$ units

Year $4$ Production

$025,000$

$50,000$

$75,000$

$100,000125,000$

Total Units to be Produced

$1($a$).$ Assume the company uses straight$-$line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life. Compute the equipment's book value at the end of its first year. $($b$).$ Assume the company uses straight$-$line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life. Compute the depreciation for the second year given the revised useful life estimate.

$2.$ At the end of the equipment's useful life, the company plans to sell it$.$ Record the sale of equipment at the end of its useful life for $($a$)$ $$12,000$ cash and $($b$)$ $$6,000$ cash.

Complete this question by entering your answers in the tabs below.

Required $1A$

Required $1$B

Required $2$

Assume the company uses straight$-$line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life. Compute the equipment's book value at the end of its first year.

$\backslash$table$[[$Book Value at the End of Year $1$:$,,],[$Cost$,$$$,40,000],[$Accumulated depreciation of first year,,$],[$Book value at point of revision,$$,40,000]]$

Required $1A$

Required $18?$