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.

2.

Which method tracks the wear and tear on the equipment most closely?

Mama'sMama's Fried Chicken bought equipment on JanuaryJanuary 22, 20182018, for $ 18 comma 000$18,000. The equipment was expected to remain in service for four years and to operate for 3 comma 0003,000 hours. At the end of the equipment's useful life, Mama'sMama's estimates that its residual value will be $ 3 comma 000.$3,000. The equipment operated for 300300 hours the first year, 900900 hours the second year, 1 comma 2001,200 hours the third year, and 600600 hours the fourth year. Read the requirements LOADING... . 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, anddouble-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 Book Date Cost Cost Life Expense Depreciation Value 1-2-2018 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 Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-2-2018 12-31-2018 x = 12-31-2019 x = 12-31-2020 x = 12-31-2021 x = Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Enter a "0" for any items with a zero value.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Book Date Cost Value Rate Expense Depreciation Value 1-2-2018 12-31-2018 x = 12-31-2019 x = 12-31-2020 = 12-31-2021 = Requirement 2. Which method tracks the wear and tear on the equipment most closely? The double-declining-balance straight-line units-of-production method tracks wear and tear most closely.