Question
Crackling Fried Chicken bought equipment on January 2, 2024, for $15,000. The equipment was expected to remain in service for four years and to operate
Crackling Fried Chicken bought equipment on January 2, 2024, for $15,000. The equipment was expected to remain in service for four years and to operate for 2,400 hours. At the end of theequipment's usefullife, Crackling estimates that its residual value will be $3,000. The equipment operated for 240 hours the firstyear, 720 hours the secondyear, 960 hours the thirdyear, and 480 hours the fourth year.
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.
Requirement 1. prepare schedule of depreciationexpense, accumulateddepreciation, and book value per year for the equipment under the three depreciationmethods: straight-line,units-of-production, anddouble-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
Begin by preparing a depreciation schedule using thestraight-line method.
Straight-Line Depreciation Schedule
Depreciation for the Year
Asset
Depreciable
Useful
Depreciation
Accumulated
Book
Date
Cost
Cost
Life
Expense
Depreciation
Value
1-2-2024
12-31-2024
=
12-31-2025
=
12-31-2026
=
12-31-2027
=
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
