The company founder hires us as consultants and asks that we owersee the accounting for new equipment purchosed on January t. The founder wants to know the implications of diferent depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from now investors and creditors. At the end of the equipment's first year in operation, we are given the following Tableau Dashboard. Actual \& Estimated Units-of-Production 14a). Determine the equipenent's firstyear depreciation under the straight-the method 1fb). Determine the equlpment's firstyear depreciation under the units-of-production mothod Noter Actual units produced foe Year 1 were equal to the units entimated to be produced for Year 1 I(c). Determine the equipment's first-yoar depreciation under the double-declining-balance mothouk. 2. Which method in part 1 results in the highest net income in the first yoar?. 3. If the company anticlpates thet its use of assets will vary greatly from one year to the next based on usage, which method would we recommend the company use? 14a). Determine the equipment's firstyear depreciotion under the straight-line method. 1(b). Determine the equipment's first-year depreciation under the units-of-preduction method. Nofe: Actual units produced for Year 1 were equal to the units estimated to be preduced for Year 1 , Wcc. Determine the equigment's firstyear depreciation under the double-declining-balance method. 2. Which method in part 1 results in the highest net income in the first yoar? 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 secommend the compary use? 4. The founder is concerned that a depreciallon method might result in more total depreciation expense over the useful afe of an astet 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. Determine the equipment's first-year depredation under the double-decining-balance method. 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 ecommend the company use? The founder is concerned that a depreciation method might result in more total depreciation expense over the useful if of an assef 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. Determine the equipment's first-year depreciation under the units-of-production method. Note: Actual units produced for rear 1 were equal to the units estimated to be produced for Year 1
