Fill in the depreciation schedule Depreciation Schedule Year Value at beginning of year DDB Rate Accumulated Depreciation to date Current Year Depreciation Book value at year-end 2019 2020 2021 2022 2023 Fill in the journal entry for the 2022 depreciation: Date Account Titles & Explanation P.R. Debit Credit Compare all 3 methods with this piece of equipment: Transfer, using Excel formulas, the required pieces of data from your calculations above into the chart below. Current Year Depreciation Year Straight-Line Units of Activity Double-Declining-Balance 2019 2020 2021 2022 2023 Book Value at Year-End Year Straight-Line Units of Activity Double-Declining-Balance 2019 2020 2021 2022 2023 Now, let's compare the depreciation methods and what they can mean for us. Depreciation is not a true expense in the sense that there is no actual money paid out for it. Instead, while we refer to the depreciation used up each year as a depreciation expense, it is actually one of the "allowances" the IRS gives our business as a tax deduction. It is also a way for us to show how much value the equipment has used up since we acquired it. There are more detailed rules than what we have learned for depreciation, but you will learn those in a more in-depth accounting course. For now, we need to understand the basic methods and the impact they can have on our business. We know depreciation expense is reported on the Income Statement (obviously as an expense). We also know that our asset's book value, minus any accumulated depreciation, is reported on the Balance Sheet. (Balance Sheet refresher: This shows our Assets, Liabilities, and Equity for our business). Answer the following questions: 1. Based ONLY on the current year depreciation numbers, which method of depreciation do you think would be most beneficial for our company to use? Why do you think this? 2. Based ONLY on the current year depreciation numbers, which method of depreciation do you think is least beneficial for our company to use? Why do you think this? 3. Based ONLY on the book value at year-end, which method of depreciation do you think would be the most beneficial for our company to use? Why do you think this? 4. Based ONLY on the book value at year-end, which method of depreciation do you think is least beneficial for our company to use? Why do you think this? 5. Looking at BOTH charts above and factoring in all of the data, which depreciation method do you think would benefit our company the most, and why? 6. Looking at BOTH charts above and factoring in all of the data, which depreciation method should we definitely not use, and why? Fill in the depreciation schedule Depreciation Schedule Year Value at beginning of year DDB Rate Accumulated Depreciation to date Current Year Depreciation Book value at year-end 2019 2020 2021 2022 2023 Fill in the journal entry for the 2022 depreciation: Date Account Titles & Explanation P.R. Debit Credit Compare all 3 methods with this piece of equipment: Transfer, using Excel formulas, the required pieces of data from your calculations above into the chart below. Current Year Depreciation Year Straight-Line Units of Activity Double-Declining-Balance 2019 2020 2021 2022 2023 Book Value at Year-End Year Straight-Line Units of Activity Double-Declining-Balance 2019 2020 2021 2022 2023 Now, let's compare the depreciation methods and what they can mean for us. Depreciation is not a true expense in the sense that there is no actual money paid out for it. Instead, while we refer to the depreciation used up each year as a depreciation expense, it is actually one of the "allowances" the IRS gives our business as a tax deduction. It is also a way for us to show how much value the equipment has used up since we acquired it. There are more detailed rules than what we have learned for depreciation, but you will learn those in a more in-depth accounting course. For now, we need to understand the basic methods and the impact they can have on our business. We know depreciation expense is reported on the Income Statement (obviously as an expense). We also know that our asset's book value, minus any accumulated depreciation, is reported on the Balance Sheet. (Balance Sheet refresher: This shows our Assets, Liabilities, and Equity for our business). Answer the following questions: 1. Based ONLY on the current year depreciation numbers, which method of depreciation do you think would be most beneficial for our company to use? Why do you think this? 2. Based ONLY on the current year depreciation numbers, which method of depreciation do you think is least beneficial for our company to use? Why do you think this? 3. Based ONLY on the book value at year-end, which method of depreciation do you think would be the most beneficial for our company to use? Why do you think this? 4. Based ONLY on the book value at year-end, which method of depreciation do you think is least beneficial for our company to use? Why do you think this? 5. Looking at BOTH charts above and factoring in all of the data, which depreciation method do you think would benefit our company the most, and why? 6. Looking at BOTH charts above and factoring in all of the data, which depreciation method should we definitely not use, and why?