1(a). Determine the equipments first-year depreciation under the straight-line method. 1(b). Determine the equipments 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 equipments 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 assets useful life?

Required 1A

Choose Numerator:

• Beginning book value
• Cost
• Cost minus salvage

Choose Demominator:

• Double the SL rate
• Estimated units of production
• Estimated useful life (years)

Required 1B

Choose Numerator:

• Beginning book value
• Cost
• Cost minus salvage

Choose Demominator:

• Double the SL rate
• Estimated useful life (years)
• Total units of production

Required 2

Which method in part 1 results in the highest net income in the first year?

• Double-declining-balance
• Straight-line method
• Units-of-production

Required 3

Which method would we recommend the company use?

• Amortization method
• Double-declining-balance method
• Straight-line method
• Units-of-production method

Required 4

Which method would result in the highest amount of depreciation over an assets useful life?

• Double-declining-balance method
• Straight-line method
• The three methods result in the same total depreciation over the assets life.
• Units-of-production method

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 20 $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 8 $20,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be produced 100,000 125,000 + ableau 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 20 $70,000 16 $60,000 $50,000 Building: 15 years 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be produced 100,000 125,000 + ableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 Equipment: 4 years $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be Produced 100,000 125,000 %ableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 Truck: 6 years $0 0 Building Equipment Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 100,000 125,000 50,000 75,000 Total Units to be Produced 8 tableau 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 20 16 $60,000 Building. Purchase Price: $70,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Building Equipment Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be Produced 100,000 125,000 %ableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 Building. Salvage Value: $30,000 $10,000 $0 0 Building Equipment Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be Produced 100,000 125,000 %ableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 Equipment Purchase Price: $40,000 $20,000 $10,000 $0 0 Building Equipment Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be Produced 100,000 125,000 %ableau 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 20 $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 8 $20,000 $10,000 $0 0 Equipment Salvage Value: $10,000 Building Equipment Purchase Salvage Purchase Price Value Price Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 100,000 125,000 50,000 75,000 Total Units to be produced %ableau 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 20 $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 8 $20,000 Truck Purchase Price: $30,000 $10,000 $0 0 Building Equipment Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 100,000 125,000 50,000 75,000 Total Units to be produced %ableau 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 20 $70,000 16 $60,000 $50,000 12 $40,000 Years 8 $30,000 $20,000 $10,000 $0 0 Building Equipment Truck Purchase Salvage Purchases Price Value Price Truck Salvage Value: $5,000 Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be Produced 100,000 125,000 tableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 1 Production: 35,000 units Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 100,000 125,000 50,000 75,000 Total Units to be produced + ableau 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 20 Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Building Equipment Truck Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 2 Production: 55,000 units Year 3 Production Estimated Year 4 Production Estimated 25,000 100,000 125,000 50,000 75,000 Total Units to be produced 8 tableau 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 20 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Building Equipment Truck Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 3 Production: 25,000 units Year 4 Production Estimated 25,000 50,000 75,000 Total Units to be produced 100,000 125,000 + ableau 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 20 Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 Years $30,000 $20,000 $10,000 $0 0 Building Equipment Truck Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Value Price Value Actual & Estimated Units-of-Production Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated Year 4 Production: 5,000 units 100,000 125,000 25,000 50,000 75,000 Total Units to be Produced 8 tableau 1(a). 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 1B Required 1C Required 2 Required 3 Required 4 Determine the equipment's first-year depreciation under the straight-line method. Straight-Line Method Choose Numerator: Choose Denominator: Annual Depreciation Expense = Depreciation expense 4 Required 1A Required 1B > 1(a). 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 1B 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 1 were equal to the units estimated to be produced for Year 1. Units-of-production Depreciation Choose Numerator: 1 Choose Denominator: = Annual Depreciation Expense Depreciation expense per unit 0 Year Annual Production (units) Depreciation Expense 1 1(a). 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 1B Required 1C 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 1(a). 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 1B Required 1C Required 2 Required 3 Required 4 Which method in part 1 results in the highest net income in the first year? Which method in part 1 results in the highest net income in the first year? 1(a). 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 IA Required 1B Required 10 Required 2 Required 3 Required 4 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? Which method would we recommend the company use? 1(a). 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 1B Required 10 Required 2 Required 3 Required 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? Which method would result in the highest amount of depreciation over an asset's useful life?