P3. Zeigler Manufacturing Company purchased a robot for $720,000 at the beginningof year 1. The robot has an estimated useful life of four years and an estimated residualvalue of $60,000. The robot, which should last 20,000 hours, was operated 6,000 hoursin year 1; 8,000 hours in year 2; 4,000 hours in year 3; and 2,000 hours in year 4.ReQUIReD1. Compute the annual depreciation and carrying value for the robot for each yearassuming the following depreciation methods: (a) straight-line, (b) production, and(c) double-declining-balance.2. If the robot is sold for $750,000

1. Compute the annual depreciation and carrying value for the robot for each yearassuming the following depreciation methods: (a) straight-line, (b) production, and(c) double-declining-balance.2. If the robot is sold for $750,000 after year 2, what would be the amount of gain orloss under each method?3. accounting Connection What conclusions can you draw from the patternsof yearly depreciation and carrying value in requirement 1? Do the three methodsdiffer in their effect on the company's profitability? Do they differ in their effect onthe company's operating cash flows? Explain.LO 2 1: Land: $723,900 1: Land Improvements: $142,000 1: Buildings: $1,383,600 1: Equipment: $210,800LO 3, 4 1a: Depreciation,year 3: $165,000 1b: Depreciation,year 3: $132,000 1c: Depreciation,year 3: $90,000Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).