Chapter 9 Homework Questions 1. On January 2, 2012, Kinnamon Corp purchased equipment that cost $39,000. At the end of the equipment's 5 year useful life, Kinnamon expects to be able to recover the equipment's $2,000 residual value. The equipment is supposed to run for a total life of 10,000 hours. It is expected to be used 1,500 hours in year 1; 3,000 hours in year 2; 3,300 hours in year 3; and 1.100 hours each year for year's 4 and 5. A Prepare a depreciation schedule for the asset's entire useful life using each of the following methods 1. Straight Line 2. Production (Units of Production) 3. Double Declining Balance B. Assume that the company decided to sell the equipment in year 2 for $22.000 in cash. Prepare the required journal entry assuming the company used each of the following depreciation methods 1. Straight Line 2. Production (Units of Production) 3. Double Declining Balance