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 Assets Purchase Price & Estimated Salvage Value Building Equipment Truck $70,000 20 16 $60,000 15 years $50,000 12 $70,000 $40,000 Years $30,000 6 years 4 years $20,000 $30,000 $40,000 $10,000 $30,000 $5,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual 35,000 units Year 2 Production Estimated 55,000 units Year 3 Production 25,000 units Estimated Year 4 Production 5,000 units Estimated 0 25,000 100,000 125,000 50,000 75,000 Total Units to be produced Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 2 Required 3 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 metho result in the highest amount of depreciation over an asset's useful life? Which method would result in the highest amount of depreciation over an asset's useful le? Required 3 Double-declining-balance method Straight-line method The three methods result in the same total depreciation over Units of production method 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 Assets Purchase Price & Estimated Salvage Value Building Equipment Truck $70,000 20 16 $60,000 15 years $50,000 12 $70,000 $40,000 Years $30,000 6 years 4 years $20,000 $30,000 $40,000 $10,000 $30,000 $5,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual 35,000 units Year 2 Production Estimated 55,000 units Year 3 Production 25,000 units Estimated Year 4 Production 5,000 units Estimated 0 25,000 100,000 125,000 50,000 75,000 Total Units to be produced Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 2 Required 3 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 metho result in the highest amount of depreciation over an asset's useful life? Which method would result in the highest amount of depreciation over an asset's useful le? Required 3 Double-declining-balance method Straight-line method The three methods result in the same total depreciation over Units of production method
