More info htion, and asset book value for On January 4, 2018, Amarillo Enterprises, inc., paid \$265,000 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $200 for vransportation charges, $00 for insurance for the equipment while in transi, $11,900 sales 1ax, and $2.400 for a special platform on which to place the equipment in the plant. Management of Amanllo Enterprises, tinc, essmates that the equipment will remain in service for five years and have a residual value of $30,000. The squipment wil produce 90,000 units the first year, wh annual peoduction decreasing by 5,000 unts during each of the next four years (i.e, 85,000 units in year 2,80,000 units in year 3; and so on, for a total of 400,000 units) in trying to decido which depreciation mothod to use. Amanilo Enterprises, Inc. requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance) Requirtment 1. For each deprecietion method, prepare a depreciation schedule showing asset cost, deprecintion expense, accumuluted depreciation, and asset book value for each year of the assers life. For the units of production method, round depreciabion per unit to three decinas places. Before completing the straight Ine depreciason schedule, calculale the straghline sepreciation rate 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 asser's life. For the units of production method, round depreciation per unit to three decimal places: 2. Amarilo 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 Amarilio Enterprises, Inc. uses the equipment. Idenify the depreciation methods that meet Amarillo Enterprises' objectives, assuming the income tax authorities permit the use of any method. 3. Show how Amarilo Enterprises, Inc, would report equipment on the December 31, 2018, balance sheet for each depreciation method More info htion, and asset book value for On January 4, 2018, Amarillo Enterprises, inc., paid \$265,000 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $200 for vransportation charges, $00 for insurance for the equipment while in transi, $11,900 sales 1ax, and $2.400 for a special platform on which to place the equipment in the plant. Management of Amanllo Enterprises, tinc, essmates that the equipment will remain in service for five years and have a residual value of $30,000. The squipment wil produce 90,000 units the first year, wh annual peoduction decreasing by 5,000 unts during each of the next four years (i.e, 85,000 units in year 2,80,000 units in year 3; and so on, for a total of 400,000 units) in trying to decido which depreciation mothod to use. Amanilo Enterprises, Inc. requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance) Requirtment 1. For each deprecietion method, prepare a depreciation schedule showing asset cost, deprecintion expense, accumuluted depreciation, and asset book value for each year of the assers life. For the units of production method, round depreciabion per unit to three decinas places. Before completing the straight Ine depreciason schedule, calculale the straghline sepreciation rate 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 asser's life. For the units of production method, round depreciation per unit to three decimal places: 2. Amarilo 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 Amarilio Enterprises, Inc. uses the equipment. Idenify the depreciation methods that meet Amarillo Enterprises' objectives, assuming the income tax authorities permit the use of any method. 3. Show how Amarilo Enterprises, Inc, would report equipment on the December 31, 2018, balance sheet for each depreciation method
