Hearty Fried Chicken bought equipment on January 2, 2018, for $42,000. The equipment was expected to remain in service for four years and to operate for 7,200 hours. At the end of the equipment's useful life, Hearty estimates that its residual value will be $6,000. The equipment operated for 720 hours the first year, 2,160 hours the second year, 2,880 hours the third year, and 1,440 hours the fourth year. Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Date Cost Cost Life Expense Depreciation 1-2-2018 Book Value 12-31-2018 = 12-31-2019 12-31-2020 = 12-31-2021 Before calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. Depreciation per unit ( Prepare a depreciation schedule using the units-of-production method. Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Date Cost Per Unit Units Expense 1-2-2018 Accumulated Book Depreciation Value 12-31-2018 = 12-31-2019 12-31-2020 Hearty Fried Chicken bought equipment on January 2, 2018, for $42,000. The equipment was expected to remain in service for four years and to operate for 7,200 hours. At the end of the equipment's useful life, Hearty estimates that its residual value will be $6,000. The equipment operated for 720 hours the first year, 2,160 hours the second year, 2,880 hours the third year, and 1,440 hours the fourth year. Read the fequirements DEP CLICLIVIT PCI UTIL ( Prepare a depreciation schedule using the units-of-production method. Book Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation 1-2-2018 12-31-2018 Value 12-31-2019 = 12-31-2020 12-31-2021 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Enter a "0" for any items with a zero value.) Double -Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Cost Rate Expense Depreciation Book Value Value Date 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 Requirement 2. Which method tracks the wear and tear on the equipment most closely? The method tracks wear and tear most closely