More info On January 2, 2018, Bailey Enterprises, Inc., paid $233,300 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $1,100 for transportation charges, $900 for insurance for the equipment while in transit, $11,800 sales tax, and $2,900 for a special platform on which to place the equipment in the plant. Management of Bailey Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $25,000. 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 (i.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, Bailey Enterprises, Inc., requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance). Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, a the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. Before completing the double-declining balance (DDB) schedule, calculate the double-declining balance rate. Before completing the double-declining balance (DDB) schedule, calculate the double-decining balance rate. Complete the Double-Declining Balance Depreciation Schedule. Begin by filling out the schedule through 2019 , and then complete the schedule by entering the amounts through 2022. Before completing the double-declining balance (DDB) schedule, calculate the double-decining balance rate. Complete the Double-Declining Balance Depreciation Schedule. Begin by filling out the schedule through 2019 , and then complete the schedule by entering the amounts through 2022