ch10-3 Estimated Useful life of Assets: building-15 years equipment-4years truck-6 years Purchase Price & Estimated Salvage Value: Building- purchase price $70,000/salvage value $30,000 Equipment- purchase price $40,000/salvage value $10,000 Truck-purchase price $30,000/salvage value $5,000 Actual & Estimated Units-of-Production: Year 1 actual production- 35,000 units Year 2 estimated production-55,000 units Year 3 estimated production- 25,000 units Year 4 estimated production-5,000 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the straight-line method. Straight-Line Method Choose Numerator: Choose Denominator: Annual Depreciation Expense Depreciation expense Required 18 To 1(a). Determine the equipment's first-year depreciation under the straight-line method. 1(b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. 1(c). Determine the equipment's first-year depreciation under the double-declining balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. Unite-of-production Depreciation Choose Numerator: 1 Choose Denominator: - Annual Depreciation Expense 1 Depreciation expense per unit 1 0 Yoar Annual Production (units) Depreciation Expense 1 Which method would result in the highest amount of depreciation over an asset's use expense o Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the double-declining-balance method. Depreciation for the Period Beginning of Depreciation Depreciation Porlod Book Value Rato (%) Expense End of Period Accumulated Depreciation Book Value Annual Period First Year 1(c). Determine the equipment's first-year depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the use than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Required 4 Which method in part 1 results in the highest net income in the first year? Which method in part 1 results in the highest net income in the first year?