On December 27, 2021, Sheridan Windows purchased a piece of equipment for \( \$ 103,000 \). The estimated useful life of the equipment is either four years or 50,000 units, with a residual value of \( \$ 7,000 \). The company has a December 31 fiscal year end and normally uses straight-line depreciation. Management is considering the merits of using the units-of-production or diminishing-balance method of depreciation instead of the straight-line method. The actual numbers of units produced by the equipment were 9,000 in \( 2022,16,500 \) in 2023, and 23,500 in 2024. The equipment was sold on January 5, 2025, for \( \$ 15,000 \). (a) Calculate the depreciation for the equipment for 2022 to 2024 under 1. the straight-line method 2. the diminishing-balance method, using a \( 40 \% \) rate; and 3. units-of-production (Round depreciable amount per unit to 3 decimal places, eg. 1.252 and the final answers to 0 decimal places, e.8. 126.)

Calculate the gain or loss on the sale of the equipment under each of the three methods. (Enter negative amounts using either a

negative sign preceding the number eg.-45 or parentheses eg. (45))

Gain (loss) on sale

1. Straight-line

2. Diminishing-balance

3 Units-of-production

Calculate the total depreciation expense plus the loss on sale for minus the gain on sale) under each of the three depreciation

methods

Net Expense

1 Straight-line

2. Diminishing-balance

3. Unit-of-production