Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment will have a residual value of $10,000. Cheetah Copy also estimates it will use the equipment for four years or about 5,000 total hours.

Required:

Prepare a depreciation schedule for three years using the following methods:

1. Straight-line.

2. Double-declining-balance.

3. Activity-based. Actual use per year was as follows:

Year Hours Used

1 ........1,200

2 ........1,400

3 ........1,500

4 ........1,100