Sunland Company purchased equipment on account on September 3, 2019, at an invoice price of $187,000. On September 4, 2019, it paid $4,400 for delivery of the equipment. A one-year, $1,930 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Sunland paid $3,600 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019. Sunland estimates that the equipment's useful life will be four years, with a residual value of $9,500. It also estimates that, in terms of activity, the equipment's useful life will be 92,750 units. Sunland has a September 30 fiscal year end. Assume that actual usage is as follows:

# of Units		Year Ended September 30
15,470		2020
23,770		2021
20,070		2022
34,340		2023

Determine the cost of the equipment.

Cost of equipment

$

Prepare depreciation schedules for the life of the asset under the following depreciation methods:

1.		straight-line
2.		double diminishing-balance
3.		units-of-production

(Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.) 1. STRAIGHT-LINE DEPRECIATION

								End of Year
Year		Depreciable Amount		Depr. Rate		=	Depr. Expense	Accum. Depr.	Carrying Amount
2020		$			%		$	$	$
2021					%
2022					%
2023					%

2. DOUBLE DIMINISHING-BALANCE DEPRECIATION

									End of Year
Year		Carrying Amount Beginning Of Year		Depr. Rate		=	Depr. Expense		Accum. Depr.	Carrying Amount
2020		$			%		$		$	$
2021					%
2022					%
2023					%

3. UNITS-OF-PRODUCTION

								End of Year
Year		Units of Production		Depr. Amt/Unit	=	Depr. Expense		Accum. Depr.	Carrying Amount
2020				$		$		$	$
2021
2022
2023

Which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset?

method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset,

result in the same total depreciation expense.