Problem: (DepreciationSL, DDB, SYD, Act., and MACRS) On January 1st, 2016, Marco Company, a medium-sized manufacturer, acquired the following assets: Cost Salvage Value Useful Life Units of Production MACRS Class Life Asset #1 $1,500,000 $100,000 5 2016 42,000 5 * Total units of 2017 38,000 output = 160,000 2018 36,000 Asset #2 $600,000 $40,000 7 2016 25,000 7 * Total units of 2017 20,000 output = 100,000 2018 18,000 Asset #3 $850,000 $- 0 10 2016 85,000 10 *Total units of 2017 80,000 output = 500,000 2018 70,000 The following depreciation methods may be used: (1) straight-line; (2) double-declining-balance; (3) sum-of-the-years-digits; and (4) units-of-output. For tax purposes, use the (5) MACRS tables for computing depreciation. Instructions: Round to whole dollars for all solutions. (a) Calculate the annual depreciation for each of the three assets for each of the five depreciation methods described above. Provide the depreciation expense for years 2016, 2017, and 2018. To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use formulas where appropriate, and label the annual depreciation for each year. Make sure all components are included such as depreciable cost, etc. (b) Calculate the annual depreciation for each of the three assets for each of the five depreciation methods, assuming they were all purchased June 1st, 2016. Provide the depreciation expense for years 2016, 2017, 2018. (c ) (1) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2018? (2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2018? (Remember that MACRS is not an acceptable method under GAAP)