On April 22, 2023, Sandstone Enterprises purchased equipment for $129,200. The company expects to use the equipment for 12,000 working hours during its four-year life and that it will have a residual value of $14,000. Sandstone has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2,800 hours in 2024; 3,700 hours in 2025; 2,700 hours in 2026; and 1,100 hours in 2027. 

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 assuming a rate of 50%, 

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?