Question $15$ of $21$

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On January $1,2022,$ Wildhorse Company, a small machine$-$tool manufacturer, acquired a piece of new industrial equipment for $$1,960,000.$ The new equipment had a useful life of $5$ years, and the salvage value was estimated to be $$40,000.$ Wildhorse estimat that the new equipment can produce $10,000$ machine tools in its first year. It estimates that production will decline by $1,000$ units $p$ year over the remaining useful life of the equipment.

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.

$($a$)$

Which depreciation method would maximize net income for financial statement reporting for the three$-$year period ended December $31,2024?$

Prepare a schedule showing the amount of accumulated depreciation at December $31,2024,$ under each method to support the method selected. I gnore present value, income tax, and deferred income tax considerations. $($Round depreciation rate per unit to $2$ decimal places, e$.$g$.15\mathrm{.}75$ and final answers to $0$ decimal places, e$.$g$.5,275.)$