On January 3, 2020, Xenex Innovations purchased computer equipment for $135,250. The equipment will be used in research and development activities for five years or a total of 9,300 hours and then sold for about $19,000. Assume actual usage in hours of:

2020		2021		2022		2023		2024
1,600		1,830		2,900		3,030		3,200

Required: Calculate depreciation expense and book values for each year of the equipments life for each method of depreciation using the table provided below. Xenexs year-end is December 31. (Do not round intermediate calculations.)

Analysis Component:

Which method will result in the greatest: a. Total assets being reported on the balance sheet in 2020? in 2023?

b. Operating expenses being reported on the income statement in 2020? in 2023?