Reference no: EM131810334

Requirements

1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units-of-production method, round depreciation per unit to three decimal places.

2. Azul Enterprises, Inc., prepares financial statements using the depreciation method that reports the highest income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year Azul Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Azul Enterprises' objectives, assuming the income tax authorities permit the use of any method.

3. Show how Azul Enterprises, Inc., would report equipment on the December 31, 2015, balance sheet for each depreciation method."