PROBLEM $2(20$ POINTS, to get points needs to present complete computations$)$

Ray Corporation purchased a concrete mixer on July $15,2020.$ Company officials revealed the following information regarding this asset and its acquisition:

Purchase price

Residual value

Estimated useful life

Estimated service hours

$\backslash$table$[[$$$,125,000],[$$$,18,000]]$

Estimated production in units

$10$ years

$38,000$

$500,000$ yards

The concrete mixer was operated by construction crews in $2020$ & $2021$ for a toal of $5,225$ hours & $6,240$ hours; and it produced $77,000$ yards and $125,000$ yards of concrete respectively.

It is company policy to take a half$-$year depreciation on all assets for which it used the straight$-$line or double declining$-$balance depreciation method in the year of purchase.

Required:

Calculate the resulting depreciation expense for $2020$ & $2021$ under each of the following methods and specify which methods allows the greatest depreciaton expense for each year.

Double$-$declining balance

Productive$-$output

Service$-$hours

Straight$-$line