the equipment for 12,000 working hours during its four-year life and that it will have a residual value of $14.99 E9-3 On April 22,2016, Sandstone Enterprises purchased clinipment for $ 129,200. The company expect to w Sandstone has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine.com was: 1,900 hours in 2016; 2,800 hours in 2017; 3,700 hours in 2018; 2,700 hours in 2019; and 1,100 hours in 20 Instructions (a) Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. straight-line, 2. double diminishing-balance, and 3. units-of-production. (b) Which method results in the lowest profit over the life of the asset? (c) Which method results in the least cash used for depreciation over the life of the asset? ate cost and calculate period depreciation. 1.2) AP P9-2B In its first year of business, Solinger Company purchased land, a building, and equipment on November 3, 2016, for $700,000 in total. The land was valued at $262,500, the building at $337,500, and the equipment at $150,000. Additional information on the depreciable assets follows: Asset Residual Value Useful Life in Years Depreciation Method Building $15,000 60 Straight-line Equipment 15,000 8 Double diminishing-balance Instructions (a) Allocate the purchase cost of the land, building, and equipment to each of the assets. (b) Solinger has a December 31 fiscal year end and is trying to decide how to calculate depreciation for assets purchased during the year. Calculate depreciation expense for the building and equipment for 2016 and 2017 assuming 1. depreciation is calculated to the nearest month. 2. a half-year's depreciation is recorded in the year of acquisition