Requirement 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.Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate.OneyearUseful life(SL) Depreciation rate- X1More Info- XRequirementsComplete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022.On January 4, 2018, Bailey Enterprises, Inc., paid $205,600 for equipment used inmanufacturing automotive supplies. In addition to the basic purchase price, thecompany paid $1,000 for transportation charges, $100 for insurance for theequipment while in transit, $10,500 sales tax, and $2,800 for a specialwhich to place the equipment in the plant. Management of Bailey Enterprises, Inc.,estimates that the equipment will remain in service for five yresidual value of $20,000. The equipment will produce 60,000 units the first year,Straight-Line Depreciation Schedule1. 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 productionmethod, round depreciation per unit to three decimal places.Depreciation Depreciable Depreciation AccumulatedAssetplatform onDateAsset CostRateCostExpenseDepreciationBook Value2. Bailey Enterprises, Inc., prepares financial statements using the depreciation method that reports the highestincome in the early years of asset use. For income tax purposes, the company uses the depreciation methodthat minimizes income taxes in the early years. Consider the first year Bailey Enterprises, Inc., uses theequipment. Identify the depreciation methods that meet Bailey Enterprises' objectives, assuming the incometax authorities permit the use of any method.January 4, 2018Ive years and have aDecember 31, 2018with annual production decreasing by 10,000 units during each of the next fourwith anyears (i.e., 50,000 units in year 2; 40,000 units in year 3; and so on, for a total ofDecember 31, 2019200,000 units). In trying to decide which depreciation method to use,Bailey Enterprises, Inc., requested a depreciation schedule for each of the threedepreciation methods (straight-line, units of production, and double-decliningbalance).3. Show how Bailey Enterprises, Inc., would report equipment on the December 31, 2018, balance sheet foreach depreciation method.December 31, 2020December 31, 2021December 31, 2022|Before completing the units of production (UOP) depreciation schedule, calculate the depreciation expense per unit. (Round depreciation per unit to three decimal places.)PrintDoneDepreciableTotal unitPrintDonecostoutputDepreciation per unitComplete the Units of Production Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter depreciation per unit to three decimal places.)Units of Production Depreciation ScheduleDepreciationNumber ofDepreciation AccumulatedAssetDateAsset CostPer UnitUnitsExpenseDepreciation Book ValueJanuary 4, 2018December 31, 2018December 31, 2019December 31, 2020December 31, 2021December 31, 2022 Before completing the double-declining balance (DDB) schedule, calculate the double-declining balance rate.SL DepreciationDDB rateratemultiplierDDB rateComplete the Double-Declining Balance Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022.Double-Declining Balance (DDB) Depreciation ScheduleDDBAsset Book Depreciation AccumulatedAssetDateAsset CostRateValueExpenseDepreciation Book ValueJanuary 4, 2018|December 31, 2018December 31, 2019December 31, 2020December 31, 2021December 31, 2022Requirement 2. Bailey 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 Bailey Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Bailey Enterprises' objectives,assuming the income tax authorities permit the use of any method.The depreciation method that maximizes reported net income in the first year of the computer's life is thev method, which produces thev depreciation for that year. The method that minimizes income taxes in the first year is thev method, which produces thev depreciation amount for that year.Requirement 3. Show how Bailey Enterprises, Inc., would report equipment on the December 31, 2018, balance sheet for each depreciation method.SLUOPDDBDecember 31, 2018:

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The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…