E$9\mathrm{.}5($LO $2)$ AP On April $22,2020,$ 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 $2020$; $2,800$ hours in $2021$; $3,700$ hours in

$2022$; $2,700$ hours in $2023$; and $1,100$ hours in $2024.$

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 profi t over the life of the asset?

c$.$ Which method results in the least cash used for depreciation over the life of the asset?