The Arcadia Company is contemplating a large capital investment of \($32\) million in new productionline equipment, which is expected to have a useful life of six years, a residual value of \($2\) million at retirement, and be good for 800,000 units of production. The company’s controller is uncertain whether the equipment should be depreciated using the straight-line method, the double-decliningbalance method, or the units-of-production method. The CEO suggested that a decision be made only after comparing the financial effects of the three methods. The anticipated production in units for the new equipment is as follows:

Required
Prepare a depreciation schedule for The Arcadia Company for the new equipment using each of the three methods of depreciation.

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Year 1... 100,000 Year 2... 120,000 Year 3. 130,000 Year 4... 150,000 Year 5... 180,000 Year 6.... 120,000 Total... 800,000