On 2 April 2018, Blitzen Amusements purchased a machine that cost $30,000.It cost Blitzen $2,000 to install the equipment and $2,500 to train the staff on the new equipment.The equipment had a useful life of two years or 30,000 units and the residual value was estimated to be $2,000.

Blitzen produced the following number of units each year:

7,000 units 2018

16,250 units 2019

13,250 units 2020

Blitzen depreciates assets using the nearest month methodology in the year of acquisition.

Required:

1. create a depreciation schedule for 2018, 2019 and 2020 that shows depreciation expense, accumulated depreciation, and net book value, using:
2. Declining balance (70% rate)
3. Units of production
4. Which depreciation method would result in the maximum income in 2019?