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 $37.500 Years 5 Residual value $ $1,500 Service hours 30,000 Productive output (units) 72,000 Required Compute annual depreciation using each of the following methods. a. Straight-line depreciation: Compute the depreciation rate and amount for each year. Depreciation Rate 0.2 2020 37,500 x $ 2021 31.250 x $ 2022 18,750 x $ 2023 11.250 x $ 2024 6.750 x Depreciation Expenses b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 6,600 service hours of actual operation. Depreciation Rate 3 x 2020 Depreciation Expense 3X c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 12,000 units of output. Depreciation Rate 31.250 x 2020 6.250 x Depreciation Expense $ d. Sum-of-the-years-digits method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 32 x $ 32 x $ 32 x $ 32 x $ 3x e. Double-declining balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 32 * $ 12 x $ 3 x $ 12 x $ 12 x $ Check