Chapter 8, Problem 55BP

1.

To determine

Prepare the depreciation expense schedules under straight-line method, units-of-production, and double-declining-balance method.

2.

To determine

Indicate the depreciation method which maximizes net income in the early years, and the method which minimizes the income tax payments in the early years.

3.

To determine

Show the way in which Incorporation G would report equipment on the December 31, 2018, balance sheet for each depreciation method.