PROBLEM : 1 Roxy Gymnastics purchased new equipment for $175,000. It is estimated that the equipment will have a $15,000 residual value at the end of its 5- year useful service life. The double diminishing-balance method of depreciation will be used. Instructions: Prepare a depreciation schedule which shows the annual depreciation expense on the equipment for its 5-year life. PROBLEM:2 On October 1, 2017 Welch Auto Rentals purchases a new automobile for $30,000 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based on distance driven by the customer. Welch's policy is to sell and replace a car after the earlier of 3 years, or 75,000 kilometres. The average selling price of the used cars is $8,000. This particular car was driven 8,000 km in 2017, 39,000 km in 2018 and 21,000 km in 2019. Instructions a) Calculate 2017 and 2018 depreciation expense under each of the following methods: (i) Straight-line (ii) Diminishing-balance using a 40% rate (iii) Units-of-production b) Which method will best match the estimated pattern in which the asset's economic benefits are expected to be consumed? Explain. PROBLEM:3 Sangria Boat Lifts purchased equipment on January 1, 2017 for $96,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 8-year useful life. It is also estimated that the equipment will produce 100,000 units over its 8-year life. Instructions: Answer the following independent questions. a) Calculate the amount of depreciation expense for the year ended December 31, 2017, using the straight-line method of depreciation. b) If 16,000 units of product are produced in 2017 and 36,000 units are produced in 2018, what is the carrying amount of the equipment at December 31, 2018 using the units-of-production depreciation method? If the company uses the double diminishing-balance method of depreciation, what will be the balance of the Accumulated Depreciation- Equipment account at December 31, 2019? c)