Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $12,500 Years 5 Residual value $500 Service hours 10,000 Productive output (units) 24,000 Required Compute annual depreciation using each of the following methods. a. Straight-line depreciation: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 Depreciation Expense $ $ $ $ $ b. Units-of-production method using service hours as a measure of input: Compute the amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. 2020 Depreciation Expense