Norton Corporation has purchased a cement mixed on 1st January 20x1 for 14,500. The mixer is expected to have a useful life of 5 years and residual value of 1,000. The company engineers estimate the mixer will have a useful life of 7,500 hours. It was used 1,500 hours in 20X1, 2,650 hours in 20X2, 2,250 hours in 20X3, 750 hours in 20X4 and 375 hours in 20X5. Companys year ends in 31st December.

1). Compute depreciation expense and carrying value for 20x1 20X5 using the following methods: (a) straight-line, (b) production, (c) double-declining-balance

2). Prepare the adjusting entries to record depreciation for year 20X1 for each method

3). Show Balance sheet presentation of cement mixer on 31st December 20x1 and 20X2

4). What conclusions can you draw from patterns of depreciation?