Suppose ShipNow purchased equipment on January 1, 2018, for S33,000. The expected useful life of the equipment is 10 years or 60,000 units of production, and its residual value is $3,000. ShipNow prepared the following analysis of two depreciation methods EEB (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 ShipNow select for income tax purposes? Why? For tax purposes, ShipNow would select the double-declining-balance method because it results in the most depreciation in the earliest years of the asset's life This method minimizes income tax payments in the early years of the asset's life and maximizes the business's cash at the earliest possible time Requirement 2. Suppose ShipNow purchased the equipment described in the table on January 1, 2018, and depreciated the equipment by using the double-declining-balance method On July 1, 2020, ShipNow sold the equipment for S35,000 cash. Record depreciation for 2020 and the sale of the equipment on July 1, 2020. (Record debits frst, then credits. Select the explanation on the last line of the journal entry table.) First, record depreciation to the date of sale Data Table Journal Entry Date Accounts and Explanations Debit Credit July 1, 2020 Method A Straight-Line Method B Belance Annual Annual Depreciation Accumulated YearExpense Depreciation Book Value Expense Depreciation Book Value Slart 2018 S 3,000 3,000 2019 2020 $33,000 30,000 27,000 24,000 S 33,000 26,400 21,120 6,600 5,280 4,224 6,600 Choose from any list or enter any number in the input fields and then click Check Answer. 3,000 6,000 11,880 amaining 3,000 16.104 Cl