Equipment purchased at the beginning of the fiscal year for $185,000.00 is expected to have a 5 year shelf life or 15,000 operational hours. The estimated residual value will be $15,000.00. Compute the depreciation for the 5 year life of the asset.

The methods to be used are as follows:

1. Straight Line

2. Units of production. Whereas the hours produced were: 2,500 hours the first year and 3,250 hours the second year.

3.

Year	Cost	Depreciation Accumulated	Value in the books At the beginning	Percent	Depreciation	Value in the books ultimately
1
2
3
4
5