Problem 7-70A (Algorithmic) Depreciation Methods Hansen Supermarkets purchased a radio frequency identification (RFID) system for one of its stores at a cost of $150,000. Hansen determined that the system had on expected life of seven years (or 50,000,000 items scanned) and an expected residual value of $7,700. Required: 1. Determine the amount of depreciation expense for the first and second years of the system's te using the Straight-line method. Round your answer to the nearest whole dollar, and use the rounded amount for subsequent calculations Depreciation expense: b. Double-declining balance method: (Round your answers to the nearest whole dollar and do not round intermediate calculations.) Depreciation Expense per year Year 1 Year 2 2. If the number of items scanned the first and second years were 7,200,000 and 8,150,000, respectively, compute the amount of depreciation expense for the first and second years of the system's life using the units-of-production depreciation method. Round your answers to the nearest whole dollar and do not round Intermediate calculations Depreciation Expense Year 1 Year 2 3. Compute the book values for all three depreciation methods as of the end of the first and second years of the system's life. Year 1 Year 2 Previous Next > Check My Work 6 more Check My Work uses remaining morriment for Grading 14. Year 2 30, 240 x 2. If the number of items scanned the first and second years were 7,200,000 and 1,150,000, respectively compute the amount of depreciation expense for the first and second years of the system's life using the units of production depreciation method. Round your answers to the nearest whole doter and do not round intermediate calculations Depreciation Expense 20,491 Year 1 Year 2 23,195 3. Compute the book values for all three depreciation methods as of the end of the first and second years of the system's e Year 1 Year 2 Straight-line method Double-declining balance method Units-of-production method Feedback Check My Wor ta. Straight-ne depreciation locate the depreciable cost over the sette of the 1. Double-declining balance is an accelerated method of depreciation in which depreciation expenses twice the streets the book 2. Under the units of production method: Depreciation expense is the depreciation cont per un mutiple times the actual usage of the sot 3. Book valve Cost - Accumulated Depreciation Next