* Requirements - X 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, 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? Print Done Prepare a depreciation schedule using the double-declining-balance (LDB) method. (Enter a "U" for any items with a zero value.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Book DDB Asset Cost Depreciation Accumulated Expense Depreciation Book Value Date Value Rate 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 Requirement 2. Which method tracks the wear and tear on the equipment most closely? method tracks wear and tear most closely. The Choose from any list or enter any number in the input fields and then continue to the next question. Wonder Fried Chicken bought equipment on January 2, 2018, for $42,000. The equipment was expected to remain in service for four years and to operate for 7,200 hours. At the end of the equipment's useful life, Wonder estimates that its residual value will be $6,000. The equipment operated for 720 hours the first year, 2,160 hours the second year, 2,880 hours the third year, and 1,440 hours the fourth year. Read the requirements. 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, and double-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 Asset Depreciation for the Year Depreciable Useful Depreciation Cost Life Expense Accumulated Book Date Cost Depreciation Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 Wonder Fried Chicken bought equipment on January 2, 2018, for $42,000. The equipment was expected to remain in service for four years and to operate for 7,200 hours. At the end of the equipment's useful life, Wonder estimates that its residual value will be $6,000. The equipment operated for 720 hours the first year, 2,160 hours the second year, 2,880 hours the third year, and 1,440 hours the fourth year. Read the requirements. 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 Asset Depreciation for the Year Depreciation Number of Depreciation Per Unit Units Expense Accumulated Depreciation Book Value Date Cost 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Enter a "0" for any items with a zero value.)
