Deprecation exercise instructions: Assumptions Purchase at time of a piece of widget processing equipment for an assumed cost of $18,300 The equipment is assumed to have a 7-year economic life. The assumed salvage value for the widget equipment at the end of its economic life is $800. The equipment is expected to produce 35,000 widgets over its economic life. Actual annual production of widgets is 3,450 in year 1,5,200 in year 2.5,400 in year 3, 5,350 each in years 4-6 and 4,900 in year 7. Assume for the declining balance method that you will apply a double declining balance approach Use an Excel spreadsheet to create a table similar to the one shown below. On your Excel spreadsheet, using the assumptions listed above, calculate the annual depreciation expense for the widget processing equipment using each of the four methods and fill in the table in Excel. After you have completed the calculations, determine which method you would choose to use for tax purposes, if you were in the company's financial management team, and explain why in a footnote to the table. Then add a second footnote with which method you would choose for financial reporting purposes and why. Finally, submit your completed Excel spreadsheet online via Canvas. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Depreciation Straight Line Units of Production Sum-of- Years'-Digits Double Declining Balance