Tableau DA 8-3: Mini-Case, Analyzing straight-line, units-of-production, and double-declining-balance LO P1 The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1 The founder wants to know the implications of different depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment's first year in operation, we are given the following Tableau Dashboard Estimated Useful Life of Purchase Price & Estimated Salvage Assets Value Building Equipment Truck 20 $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Building Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 0 25,000 100,000 125,000 50,000 75,000 Total Units to be Produced (a). Determine the equipment's first-year depreciation under the straight-line method. 1(b). Determine the equipment's first-year depreciation under the units-of production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. 1(c). Determine the equipment's first-year depreciation under the double-declining balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 1C Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the straight-line method. Straight Line Method Choose Numerator Choose Denominator Annual Depreciation Expense Depreciation expense Required 10 > obleau 1(a). Determine the equipment's first-year depreciation under the straight-line method. 1(b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1 1(c). Determine the equipment's first-year depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Requirdi 1B Required IC Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. Units-of-production Depreciation Choose Denominator: Choose Numerator: = Annual Depreciation Expense = Depreciation expense per unit = Year Annual Production (units) Depreciation Expense 1 95 + obleau SP 1(a). Determine the equipment's first-year depreciation under the straight-line method. (b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1 1(c). Determine the equipment's first-year depreciation under the double-declining balance method. 2. Which method in part 1 results in the highest net Income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Requred 10 Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the double-declining balance method. Depreciation for the Period End of Period Annual Period Beginning of Depreciation Depreciation Accumulated Perlod Book Value Rate(%) Book Value Expanse Depreciation First Year + ableau In 1(a). Determine the equipment's first-year depreciation under the straight-line method. (b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. 1(c). Determine the equipment's first-year depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the double-declining-balance method. Depreciation for the Period End of Period Annual Period Beginning of Depreciation Depreciation Accumulated Perlod Book Value Rate(%) Expense Depreciation Book Value First Year + ableau 1(a). Determine the equipment's first-year depreciation under the straight-line method. 1(b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. 1(c). Determine the equipment's first-year depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required LA Required 16 Required 10 Required 2 Required 3 Required 4 Which method in part 1 results in the highest net income in the first year? Which method in part 1 results in the highest net income in the first year? tableau O 1(a). Determine the equipment's first-year depreciation under the straight-line method. (b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Year 1. 1(c). Determine the equipment's first-year depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first year? 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 1C Required 2 Required 3 Required 4 If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? Which method would we recommend the company use? + obleau (a). Determine the equipment's first-year depreciation under the straight-line method 1(b). Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for Year 1 were equal to the units estimated to be produced for Yeart 1(c). Determine the equipment's first year depreciation under the double declining-balance method. 3. If the company anticipates that its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 4. The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Complete this question by entering your answers in the tabs below. Required A Required 16 Required 10 Required 2 Required) Required 4 The founder is concerned that a depreciation method might result in more total depreciation expense over the useful life of an asset than another method. Which method would result in the highest amount of depreciation over an asset's useful life? Which method would rauit in the highest amount of depreciation over an et effe?