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 $70,000 $60,000 $50,000 $40,000 Years $30,000 $20,000 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Prev 1 of 1 !! Next > Bunung Eq U ER nevaruc re vor Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Estimated Year 3 Production Estimated Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be produced 100,000 125,000 + ableau + ableau 1). 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 Annual Depreciation Choose Numerator. Choose Denominator: Depreciation expanse Du Maut +ableau al. 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. 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 usce, 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 assets 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 units of production method. Note: Actual units produced for Year I were equal to the units estimated to be produced for Year 1. Units of production Depreciation Choose Denominator Choose Numerater. - Annual Depreciation Expense = Deprecation expense per unit Annual Production units D epreciation Expense + ableau 1m). 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. Mole 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 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 Period Book Value Depreciation Rate %) Depreciation Expense Accumulated Depreciation Book Value First Year 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 $70,000 $60,000 $50,000 $40,000 Years $30,000 $20,000 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Prev 1 of 1 !! Next > Bunung Eq U ER nevaruc re vor Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Estimated Year 3 Production Estimated Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be produced 100,000 125,000 + ableau + ableau 1). 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 Annual Depreciation Choose Numerator. Choose Denominator: Depreciation expanse Du Maut +ableau al. 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. 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 usce, 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 assets 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 units of production method. Note: Actual units produced for Year I were equal to the units estimated to be produced for Year 1. Units of production Depreciation Choose Denominator Choose Numerater. - Annual Depreciation Expense = Deprecation expense per unit Annual Production units D epreciation Expense + ableau 1m). 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. Mole 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 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 Period Book Value Depreciation Rate %) Depreciation Expense Accumulated Depreciation Book Value First Year