Diamond Autobody purchased a new equipment. The new equipment cost $126,000 including installation. The company estimates the equipment will have a residual value of $31,500. Diamond Autobody also estimates it will use the equipment for four years or about 8,000 total hours. Actual use per year was as follows:

YearHours Used12,00022,00032,00043,200

Required:

1. Prepare a depreciation schedule for four years using the straight-line method. 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.)

DIAMOND AUTOBODY Depreciation Schedule-Straight-Line End of Year Amounts \begin{tabular}{c|c|c|c} Year & DepreciationExpense & AccumulatedDepreciation & Book Value \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline Total & $ & 0 & \\ \hline \end{tabular}