The following occurred during the month of January at Outsiders Construction:

Required

1. Assuming Outsiders Construction amortizes this crane individually, prepare an amortization schedule for each of the three amortization methods listed, showing asset cost, amortization expense, accumulated amortization, and asset book value. Assume a December 31 year end.

2. Outsiders Construction prepares financial statements for its bankers using the amortization method that maximizes reported income in the early years of asset use. Identify the amortization method that meets the company's objective.

Requirement 1. Assuming Outsiders Construction amortizes this crane individually, prepare an amortization schedule for each of the three amortization methods listed, showing asset cost, amortization expense, accumulated amortization, and asset book value. Assume a December 31 year end.Before completing the straight-line amortization schedule, calculate the straight-line amortization rate. (Round the rate to two decimal places.)

Requirement 1. Assuming Outsiders

Construction amortizes this crane individually, prepare an amortization schedule for each of the three amortization methods listed, showing asset cost, amortization expense, accumulated amortization, and asset book value. Assume a December 31 year end.

Before completing the straight-line amortization schedule, calculate the straight-line amortization rate. (Round the rate to two decimal places.)

On January 4, 2020, Outsiders Construction purchased a used crane at a total cost of $225,000. Before placing the crane in service, Outsiders spent $15,000 transporting it, $5,200 replacing parts, and $11,000 overhauling the engine. Charlie Outtahe, the owner, estimates that the crane will remain in service for four years and have a residual value of $50,000. The crane's annual usage is expected to be 3,100 hours in each of the first three years and 2,900 hours in the fourth year. In trying to decide which amortization method to use, Mac Puddin, the accountant, requests an amortization schedule for each of the following generally accepted amortization methods: straight-line, UOP, and DDB. Time Straight-Line Amortization Rate (1 Year) / Useful Life - 11