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Problem Statement On January 5, 2023, Mark and Mark Construction purchased a used crane at a total cost of $245,000. Before placing the crane in

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Problem Statement On January 5, 2023, Mark and Mark Construction purchased a used crane at a total cost of $245,000. Before placing the crane in service, Mark and Mark spent $13,500 transporting it, $5,200 replacing parts, and $20,000 overhauling the engine. Roger Wayne, the owner, estimates that the crane will remain in service for four years and have a residual value of $47,000. The crane's annual usage is expected to be 2,900 hours in each of the first three years and 2,700 hours in the fourth year. In trying to decide which amortization method to use, Randy Nash, the accountant, requests an amortization schedule for each of the following generally accepted amortization methods: straight-line, UOP, and DDB. The following occurred during the month of January at Mark and Mark Construction: (Click the icon to view the problem statement and data.) Required 1. Assuming Mark and Mark Construction amortizes this crane individually. prepare an amortization schedule for each of the three amottization methods listed. showing asset cost, amortization expense, accumulated amontization, and asset book value. Assume a December 31 year end. 2. Mark and Mark Construction prepares financial statements for its bankers using the amortization method that maxmizes reported income in the early years of asset use. Identify the amortization method that meets the compary/s objective. Requirement 1. Assuming Mark and Mark Construction amortizes this crane individually. prepare an amortization schedule for each of the three amortization methods listed, showing asset cost, amortization expense, accumulated amortization, and asset book value. Assume a December 31 year end. Before completing the straigh-line amortization schedule, calculate the straight-line amortization rate. (Round the rate to two decimal places.)

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