On January 4, 2018. Yang Enterprises, Inc., paid $185,700 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $400 for transportation charges, $700 for insurance for the equipment while in transit, $11,600 sales tax, and $1,600 for a special platform on which to place the equipment in the plant. Management of Yang Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $20,000. The equipment will produce 90,000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (.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 decide which depreciation method to use, Yang 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, 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 Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate One year Useful life (SL) Depreciation rate 1 1 = Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts throug 2022 Straight-Line Depreciation Schedule Depreciation Depreciable Depreciation Accumulated Rate Cost Expense Depreciation Asset Date Asset Cost Book Value January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Before completing the units of production (UOP) depreciation schedule, calculate the depreciation expense per unit. (Round depreciation per unit to three decim Before completing the units of production (UOP) depreciation schedule, calculate the depreciation expense per unit (Round depreciation per unit to three decimal places) Depreciable Total unit cost output Depreciation per unit 2 Complete the Units of Production Depreciation Schedule. Begin by filing out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter depreciation per unit to three decimal places.) Units of Production Depreciation Schedule Depreciation Number of Depreciation Accumulated Asset Cost Per Unit Units Expense Depreciation Asset Date Book Value January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Before completing the double-declining balance (DDB) schedule, calculate the double declining balance rate. SL Depreciation DDB rate Before completing the double-declining balance (DDB) schedule, calculate the double declining balance rate. SL Depreciation DDB rate multiplier rate X DDB rato X 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 Double-Declining Balance (DDB) Depreciation Schedule DDB Asset Book Depreciation Accumulated Asset Date Asset Cost Rate Value Expense Depreciation Book Value January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Requirement 2. Yang 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 Yang Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Yang Enterprises objectives, assuming the income tax authorities permit the use of any method Requirement 2. Yang 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 Yang Enterprises Inc., uses the equipment. Identify the depreciation methods that meet Yang Enterprises' objectives, assuming the income tax authorities permit the use of any method. The depreciation method that maximizes reported net income in the first year of the computer's life in the method, which produces the depreciation for that year. The method that minimizes income taxes in the first year in the method, which produces the depreciation amount for that year. Requirement 3. Show how Yang Enterprises, Inc. would report equipment on the December 31, 2018, balance sheet for each depreciation method December 31, 2018: SL UOP DDB