Problem Data: Beaver Builders, Inc. has just purchased a new fork lift. The purchase price of the equipment is $200,000. The company expects to use the equipment for 4 years and estimates the equipment can be sold at the end of 4 years for $20,000 (its residual value). The accountant for Beaver Builders is trying to decide which depreciation method to use for this equipment: straight-line or units of production. The foreman for the company estimates that the equipment will be used for a total of 6,000 hours. The estimated number of hours per year are: year 1 year 2 year 3 year 4 1,900 1,500 1,400 1,200 Requirement 1: Based on the above information, prepare a schedule showing the amount of depreciation expense and total accumulated depreciation under each method. (Round amounts on the table to the nearest whole number.) Straight-Line Depreciation Method Year 1 Year 2 Year 3 Year 4 Depreciation Expense Accumulated Depreciation Balance Units of Production Depreciation Method Year 1 Year 2 Year 3 Year 4 Depreciation Expense Accumulated Depreciation Balance Requirement 2: If the company's goal is to maximize expenses and minimize net income in year 1, which depreciation method should the company select? Requirement 3: Why is it important for a business person to understand the different methods of depreciation