Pharoah Company purchased equipment on account on September 3, 2015, at an invoice price of $185,000. On September 4, 2015, it paid $4,200 for delivery of the equipment. A one-year, $1,920 insurance policy on the equipment was purchased on September 6, 2015. On September 20, 2015, Pharoah paid $3,800 for installation and testing of the equipment. The equipment was ready for use on October 1, 2015. Pharoah estimates that the equipment's useful life will be four years, with a residual value of $8,500. It also estimates that, in terms of activity, the equipment's useful life will be 75,000 units. Pharoah has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,450 2016 23,750 2017 20,050 2018 16,650 2019 Determine the cost of the equipment. Cost of equipment Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 3 decimal places, e.g. 5.275 and the final answers to 0 decimal places, e.g. 5,275.) 1. STRAIGHT-LINE DEPRECIATION Year Depreciable Amount Depr. End of Year Accum. Carrying Depr. Amount Depr. Expense Rate 2016 % 49 $ 2017 % 2018 % 2019 % 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION End of Year Year Carrying Amount Beginning of Year Depr. Rate Depr. Expense Accum. Depr. Carrying Amount $ 2016 % $ $ $ 2017 % 2018 % 2019 % 3. UNITS-OF-PRODUCTION Units of Production Depr. Amt/Unit Depr. Expense End of Year Accum. Carrying Depr. Amount Year X = 2016 2017 2018 2019 Which method would result in the highest profit for the year ended September 30, 2017? Over the life of the asset? result method would result in the highest profit for the year ended September 30, 2017. Over the life of the asset, in the same total depreciation expense