Problem 4 tk Problem 3 (7 points. Approximately 15 minutes) make several new lines of products....

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Problem 4 tk Problem 3 (7 points. Approximately 15 minutes) make several new lines of products. DMC's manager indicated that, as a condition for providing On January 1, 2022, Different Minds Company (DMC) acquired new equipment that is used to financing for the new equipment, the bank requires that DMC's total net book value of assets wust exceed $500,000, as reported on its December 31 balance sheet prepared in accordance with Canadian accounting standards for private enterprises. Before making the adjustment for this year's new equipment depreciation, DMC reported total net book value of assets at $530,000 on their balance sheet as at December 31, 2021. The manager has asked you to take a look at the facts regarding the new equipment and "work with the numbers to make sure everything stays onside with the bank." A depreciation method has yet not been adopted for the new equipment. The cost of the new equipment was $210,000 and the manager estimates it will be worth $20,000 at the end of its five-year useful life. DMC used the equipment to produce and sell 14,000 units this year. DMC anticipates that the equipment will remain quite productive throughout its entire five-year life, producing a total of 100,000 units over that entire period. 1. Calculate the depreciation that would be reported for the year ended December 31, 2022, under each of the following methods: a. Straight-line (1 point) b. Units-of-production (1 point) c. Double-declining balance (1 point) 2. The manager claims that any of the three methods can be used for this equipment because they all are systematic and rational methods. Assuming this to be true, identify and explain which method best meets the company's financial reporting objectives this year based on the requirements by the bank. (2 points) Problem 4 tk Problem 3 (7 points. Approximately 15 minutes) make several new lines of products. DMC's manager indicated that, as a condition for providing On January 1, 2022, Different Minds Company (DMC) acquired new equipment that is used to financing for the new equipment, the bank requires that DMC's total net book value of assets wust exceed $500,000, as reported on its December 31 balance sheet prepared in accordance with Canadian accounting standards for private enterprises. Before making the adjustment for this year's new equipment depreciation, DMC reported total net book value of assets at $530,000 on their balance sheet as at December 31, 2021. The manager has asked you to take a look at the facts regarding the new equipment and "work with the numbers to make sure everything stays onside with the bank." A depreciation method has yet not been adopted for the new equipment. The cost of the new equipment was $210,000 and the manager estimates it will be worth $20,000 at the end of its five-year useful life. DMC used the equipment to produce and sell 14,000 units this year. DMC anticipates that the equipment will remain quite productive throughout its entire five-year life, producing a total of 100,000 units over that entire period. 1. Calculate the depreciation that would be reported for the year ended December 31, 2022, under each of the following methods: a. Straight-line (1 point) b. Units-of-production (1 point) c. Double-declining balance (1 point) 2. The manager claims that any of the three methods can be used for this equipment because they all are systematic and rational methods. Assuming this to be true, identify and explain which method best meets the company's financial reporting objectives this year based on the requirements by the bank. (2 points)