Answer:
You get the highest net income in year 2 with Units-of-production method.
Explanation:
Schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods is attached.
Straight-line
Depreciation expense 2nd year=$5.000=(Original Value -Residual Value)/Useful life
Units-of-production
Units of Production Rate=2.5=(Original Value -Residual Value)/estimated productive life
Depreciation expense 2nd year= 7250
Double-declining-balance.
Depreciation rate 20,00% 1/useful life *100
Depreciation expense 2nd year= 6720