The choices are method A, Method B, 1000, cr 3000

Consider the following two proposed methods of accounting for capital (useful life > 1 yr) asset that is purchased in period 1 and has a three year useful life. Answer the questions below. METHOD A Period Accounts 1 Fixed Assets Cash Values 3,000 3,000 METHOD B: Period Accounts 1 Fixed Assets Cash Values 3,000 3,000 2 1,000 2 1,000 Depreciation Expense Cash 1,000 Depreciation Expense Accumulated Depreciation 1,000 3 1.000 3 1,000 Depreciation Expense Cash Depreciation Expense Accumulated Depreciation 1,000 1,000 4 1,000 4 1,000 Depreciation Expense Cash 1,000 Depreciation Expense Accumulated Depreciation 1,000 Choose... Choose... Choose... Which method is the correct accounting? Which method results in a net book value (net value on the balance sheet, or the sum of debits and credits for the fixed asset and accumulated depreciation accounts) of zero after three years? Which method inaccurately reflects changes in cash? In both methods, at the end of year 3, the fixed assets account on the balance sheet has a balance of 3,000. At the end of three years, we presume the asset is "used up", or has no remaining useful life. Which method results in the year 3 balance sheet reflecting this economic condition? What is the correct effect on the cash account (related to this transaction) over three years to reflect this transaction? Choose... Choose