1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.

2. Which method tracks the wear and tear on the equipment most closely?

Homework: Homework CH9 Save Score: 10.77 of 15 pts 4 of 10 (4 complete) HW Score: 40.77%, 40.77 of 100 pts %E9-20 (similar to) Question Help Hearty Fried Chicken bought equipment on January 2, 2018, for $15,000. The equipment was expected to remain in service for four years and to operate for 4,000 hours. At the end of the equipment's useful life, Hearty estimates that its residual value will be $3,000. The equipment operated for 400 hours the first year, 1,200 hours the second year, 1,600 hours the third year, and 800 hours the fourth year. Read the requirements Before calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. Cost - Residual value Useful life in units = Depreciation per unit ( $ 15,000 3,000 / 4,000 = $ 3 Prepare a depreciation schedule using the units-of-production method. Units-of-Production Depreciation Schedule Asset Cost 15,000 Depreciation for the Year Depreciation Number of Depreciation Per Unit Units Expense Accumulated Depreciation $ Date 1-2-2018 $ 12-31-2018 12-31-2019 12-31-2020 $ 1,200 $ 1,200 Book Value 15,000 13,800 10,200 5,400 3,000 400 = 1,200 1,600 = 800 3,600 4,800 2,400 4,800 9,600 12,000 12-31-2021 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Enter a "0" for any items with a zero value.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Book Date Cost Value Rate Expense Depreciation Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 Choose from any list or enter any number in the input fields and then click Check