Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000. The equipment was expected to remain in service for four years and to operate for 1,800 hours. At the end of the equipment's useful life, Seconds estimates that its residual value will be $6,000. The equipment operated for 480 hours the first year, 1,440 hours the second year, 1,920 hours the third year, and 980 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 Date 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 Date 1-2-2024 12-31-2024 12.31-2025 12-31-2026 12-31-2027 The Asset Depreciable Cost Cost Date 1-2-2024 12-31-2024 12-31-2025 12-31-2028 12-31-2027 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 Cost Depreciation for the Year Asset Cost | Book Value Depreciation Per Unit Useful Life Depreciation for the Year Number of Units X v x = 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 DDB Rate Depreciation Accumulated Expense Depreciation = = = Depreciation Accumulated Expense Depreciation Book Value Requirement 2. Which method tracks the wear and tear on the equipment most closely? method tracks wear and tear most closely. Book Value Depreciation Accumulated Book Expense Depreciation Value || || Requirements 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 - X Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000. The equipment was expected to remain in service for four years and to operate for 1,800 hours. At the end of the equipment's useful life, Seconds estimates that its residual value will be $6,000. The equipment operated for 480 hours the first year, 1,440 hours the second year, 1,920 hours the third year, and 980 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 Date 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 Date 1-2-2024 12-31-2024 12.31-2025 12-31-2026 12-31-2027 The Asset Depreciable Cost Cost Date 1-2-2024 12-31-2024 12-31-2025 12-31-2028 12-31-2027 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 Cost Depreciation for the Year Asset Cost | Book Value Depreciation Per Unit Useful Life Depreciation for the Year Number of Units X v x = 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 DDB Rate Depreciation Accumulated Expense Depreciation = = = Depreciation Accumulated Expense Depreciation Book Value Requirement 2. Which method tracks the wear and tear on the equipment most closely? method tracks wear and tear most closely. Book Value Depreciation Accumulated Book Expense Depreciation Value || || Requirements 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 - X
