Suppose FastBox purchased equipment on January 1,2021 , for $45,000. The expected useful life of the equipment is 10 years or 50,000 units of production, and its residual value is $5,000. FastBox prepared the following analysis of two depreciation methods: (Click the icon to view the analysis.) Read the requirements. Requirement 1. Suppose the income tax authorities permitted a choice between these two depreciation methods. Which method would FastBox select for income tax purposes? Why? For tax purposes, FastBox would select the method because it results in the most depreciation in the years of the asset's life. This method minimizes income tax payments in the years of the asset's life and maximizes the business's cash at the earliest possible time. Requirement 2. Suppose FastBox purchased the equipment described in the table on January 1, 2021, and depreciated the equipment by using the double-declining-balance method. On July 1, 2023, FastBox sold the equipment for $42,000 cash. Record depreciation for 2023 and the sale of the equipment on July 1, 2023. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First, record depreciation to the date of sale. Now record the sale of the equipment. Data table Requirements 1. Suppose the income tax authorities permitted a choice between these two depreciation methods. Which method would FastBox select for income tax purposes? Why? 2. Suppose FastBox purchased the equipment described in the table on January 1, 2021, and depreciated the equipment by using the double-declining-balance method. On July 1, 2023, FastBox sold the equipment for $42,000 cash. Record depreciation for 2023 and the sale of the equipment on July 1, 2023