Consider the following Click the icon to view the normation) Read the requirements Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost depreciation expense, sccumulated direction and asset book value for each year of the assets te. For the units of production method, round depreciation per unit to the decimal places Before completing the straight-in depreciation schedule, calculate the straight line depreciation rate One year Use the (51) Depreciation rate 1 More Info X On January 4, 2018, Amarillo Enterprises, Inc., paid $205,800 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $200 for transportation charges, $200 for insurance for the equipment while in transit, $10,900 sales tax, and $2,900 for a special platform on which to place the equipment in the plant. Management of Amarillo Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000. The equipment will produce 60,000 units the first year, with annual production decreasing by 10,000 units during each of the next four years ().e. 50,000 units in year 2: 40,000 units in year 3; and so on, for a total of 200,000 units). In trying to decide which depreciation method to use, Amarillo Enterprises, Inc.. requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance). Print Done Requirements 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. 2. Amarillo Enterprises, Inc., prepares financial statements using the depreciation method that reports the highest income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year Amarillo Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Amarillo Enterprises' objectives, assuming the income tax authorities permit the use of any method. 3. Show how Amarillo Enterprises, Inc., would report equipment on the December 31, 2018, balance sheet for each depreciation method. Print Done