Need help understanding the following questions. 
Fran Filly owns an equine boarding and training facility located in Boulder County in north central Colorado. On August 1 of this year (2022), Fran purchased a used 2010C&C fourhorse trailer with slide out living quarters to allow her to transport animals across the country for her clients. She bought the trailer for $95,000 of which she paid $46,000 cash. The remainder she financed with a 5 -year loan at 4.25% interest. The loan is amortized for equal payments over each of the 5 years. Fran intends to keep the trailer for 8 years and will sell or trade it at the end of that time. She expects that she will be able to get $24,000 for it at that time. Fran has not yet decided how she should account for the depreciation of this trailer for evaluating her management decisions. (She realizes that for tax purposes, her objectives and options are much different.) She has asked you to generate several candidate depreciation schedules each showing the annual depreciation that she will claim over the life of the trailer so that she can compare them. She would like for you to develop schedules based on the (1) straight-line, (2) sum-of-the-years-digits, and (3) time-and-a-half declining balance methods. In each case prorate the first year's depreciation according to the actual time that the asset is in service excent for case 2 where you will simply claim a full year's depreciation in each year. Use the general framework below with all depreciation claimed on of December 31 of each year: Assep Purchase Price Purch Datusahnge Value Depr MehBeg. Depr Base In addition to creating the three schedules detalled above, respond to each of these questions: 1) Identify how much depreciation Fran will claim under each method for 2026 if she keeps the trailer at least through the end of that year. 2) Describe how your schedules would have been different if Fran was interested in using the "half-year convention". (Do NOT create new depreciation schedules.) 3) Identify ANY business of your own choosing and identify a depreciable asset within that business that could have just as easily been the basis for an appropriate storyline for the problem above. In addition to identifying the asset, also indicate the minimum information would be necessary for your version of the assignment to be complete (that is with that information all assigned depreciation schedules could be constructed). Fran Filly owns an equine boarding and training facility located in Boulder County in north central Colorado. On August 1 of this year (2022), Fran purchased a used 2010C&C fourhorse trailer with slide out living quarters to allow her to transport animals across the country for her clients. She bought the trailer for $95,000 of which she paid $46,000 cash. The remainder she financed with a 5 -year loan at 4.25% interest. The loan is amortized for equal payments over each of the 5 years. Fran intends to keep the trailer for 8 years and will sell or trade it at the end of that time. She expects that she will be able to get $24,000 for it at that time. Fran has not yet decided how she should account for the depreciation of this trailer for evaluating her management decisions. (She realizes that for tax purposes, her objectives and options are much different.) She has asked you to generate several candidate depreciation schedules each showing the annual depreciation that she will claim over the life of the trailer so that she can compare them. She would like for you to develop schedules based on the (1) straight-line, (2) sum-of-the-years-digits, and (3) time-and-a-half declining balance methods. In each case prorate the first year's depreciation according to the actual time that the asset is in service excent for case 2 where you will simply claim a full year's depreciation in each year. Use the general framework below with all depreciation claimed on of December 31 of each year: Assep Purchase Price Purch Datusahnge Value Depr MehBeg. Depr Base In addition to creating the three schedules detalled above, respond to each of these questions: 1) Identify how much depreciation Fran will claim under each method for 2026 if she keeps the trailer at least through the end of that year. 2) Describe how your schedules would have been different if Fran was interested in using the "half-year convention". (Do NOT create new depreciation schedules.) 3) Identify ANY business of your own choosing and identify a depreciable asset within that business that could have just as easily been the basis for an appropriate storyline for the problem above. In addition to identifying the asset, also indicate the minimum information would be necessary for your version of the assignment to be complete (that is with that information all assigned depreciation schedules could be constructed)
