r phot equipment. In addition to the purchase price, Griffin paid $700 portation charges, $100 insurance for the equipment whin $12,100 sales tax, and $3,100 for specialized training to be able the equipment. Griffin estimates that the equipment will remain vice 5 years and have a residual value of $20,000. T produce 50,000 photos the first year, with annual production decreas by 5,000 photos during each of the next four years (that is, 45,000 tos in year 2 40,000 in year 3, and so on--a total of 200,000 photosj, trying to decide which depreciation method to use, Griffin has requested a depreciation schedule for each of three depreciation methods (straight line, units-of-production, and double-declining-balance). 0-38B On January 3, 2007, Joe Griffin Photography paid $224,000 for to use In Ser- he equipment should ing Requirements 1. For each depreciation method, prepare a depreciation schedule show- ing asset cost, depreciation expense, accumulated depreciation, and asset book value. (pp. 512-514) 2. Griffin prepares financial statements using the depreciation method that reports the highest income in the early years. For income tax purposes, the company uses the method that minimizes income taxes in the early years. Consider the first year of using the equipment. Identify the depreciation methods that meet Griffin's objectivers, assuming the income tax authorities permit the use of any of the methods. (pp. 515, 518-519)