Ch 08 Tableau-3 Log In to Canvas MyEagle 8 Tableau-3 i Tableau DA 8-3: Mini-Case, Analyzing straight-line, units-of-prod uction, and double-declining-balance LO P1 1 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. ts Purchase Price & Estimated Salvage Value Estimated Useful Life of Assets еВook Truck Equipment Building 20 Print $70,000 eferences 16 $60,000 $50,000 12 $40,000 $30,000 8 $20,000 4 $10,000 $0 0 Purchase Salvage Purchase Salvage Purchase Salvage Price Value Price Building Truck Value Price Equipment 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 0 25,000 50,000 75,000 100,000 125,000 Total Units to be Produced ableau k- raw Years Ch 08 Tableau-3 Log In to Canvas MyEagle ableau-3i Actual & Estimated Units-of-Production Actual Year 1 Production Estimated Year 2 Production Estimated Year 3 Production es Estimated Year 4 Production 125,000 100,000 75,000 50,000 25,000 0 Total Units to be Produced k- - ableau 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 4 Required 3 Determine the equipment's first-year depreciation under the straight-line method. Straight-Line Method Annual Depreciation Expense Choose Numerator: Choose Denominator: / Depreciation expense / II II