Gold Coin Machine & Dye bought a machine on January 2, 2020, for $427,000. The machine was expected to remain in service for three years and produce 2,080,000 parts. At the end of its useful life, company officials estimated that, due to technological changes, the machine's residual value would only be $7,000. The machine produced 728,000 parts in the first year, 686,400 in the second year, and 676,000 in the third year. Required 1. Prepare a schedule of amortization expense per year for the machine using the straight-ine, UOP, and DDB amortization methods. Assume that in all cases the machine is valued at $7,000 at the end of the third year, and the third-year amortization is adjusted (set as a plug) to ensure this happens. 2. Which amortization method results in the highest net income in the second year? Does this higher net income mean the machine was used more efficiently under this method? 3. Which method tracks the wear and tear on the machine most closely? Why? 4. After one year under the DDB method, the company switched to the straight-line method. Prepare a schedule of amortization expense for this situation, showing all calculations tai Requirement 1. Prepare a schedule of amortization expense per year for the machine using the straight-line, UOP, and DDB amortization methods. Assume that in all cases the machine is valued at $7,000 at the end of the third year and the third-year amortization is adjusted (set as a plug) to ensure this happens. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar) Units-of Double ble-Declining Year Straight-Line Production Balance xt 2020 2021 2022 Total Bt d| ces Text Requirement 2. Which amortization method results in the highest net income in the second year? Does this higher net income mean the machine was used more efficiently under this method? The highest second year net income would occur when there is the amortization expense. Thus, from the 2021 amounts calculated and displayed above, the method will have the highest net income. The higher net income results from the efficiencies related to the machinery Requirement 3. Which method tracks the wear and tear on the machine most closely? Why? The method tracks wear and tear most closely, AL amortization expense wil result as the machine is used more. and ces the machine is used more Requirement 4. Assume that after one year under the DDB method, the company switched to the straight-line method. Prepare a schedule of amortization expense for this situation, showing all calculations. Calculate the new straight-line amortization expense for years 2 & 3, and then complete the schedule. (The total for the totals column will not necessarily match the book value of the machine due to rounding.) Year Straight-Line Expense Double-Declining Balance Totals 2020 2021 2022 I Totals