On July 1, 2021, Plug Power, Inc, a provider of alternative energy technology focused on the design, development, commercialization and manufacture of hydrogen fuel cell systems used for the industrial off-road market and stationary power market. It acquired new industrial equipment.

Pertinent data follow:

Cost of equipment $2,950,000

Useful life 5 years

Estimated salvage value 100,000

Estimated power generator batteries to be produced in the first six months of operation 5,000

Estimated power generator batteries to be produced in 2022 6,000

Estimated power generator batteries to be produced in 2023 5,700

Estimated power generator batteries to be produced in 2024 4,850

Estimated power generator batteries to be produced in 2025 4,150

Estimated power generator batteries to be produced in 2026 2,800

The following depreciation methods may be used:

1) Straight-line

2) Double-declining balance

3) Sum-of-years'-digits

4) Units-of-Outputs

Instructions:

Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2023? Prepare a schedule showing the amount of accumulated depreciation at December 31, 2023, under the method selected. Ignore present value, income tax, and deferred income tax considerations.