On January 3, 2023, Xenex Innovations purchased computer equipment for $147,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $25,000. Assume actual usage in hours of:

2023		2024		2025		2026		2027
1,900		1,890		3,500		3,090		3,800

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 2023? in 2026?

b. Operating expenses being reported on the income statement in 2023? in 2026?