Question

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?

Homework: Homework CH9 Save Score: 10.77 of 15 pts 4 of 10 (4 complete) HW Score: 40.77%, 40.77 of 100 pts %E9-20 (similar to) Question Help Hearty Fried Chicken bought equipment on January 2, 2018, for $15,000. The equipment was expected to remain in service for four years and to operate for 4,000 hours. At the end of the equipment's useful life, Hearty estimates that its residual value will be $3,000. The equipment operated for 400 hours the first year, 1,200 hours the second year, 1,600 hours the third year, and 800 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. Cost - Residual value Useful life in units = Depreciation per unit ( $ 15,000 3,000 / 4,000 = $ 3 Prepare a depreciation schedule using the units-of-production method. Units-of-Production Depreciation Schedule Asset Cost 15,000 Depreciation for the Year Depreciation Number of Depreciation Per Unit Units Expense Accumulated Depreciation $ ني Date 1-2-2018 $ 12-31-2018 12-31-2019 12-31-2020 $ 1,200 $ 1,200 Book Value 15,000 13,800 10,200 5,400 3,000 ني 400 = 1,200 1,600 = 800 3,600 ني 4,800 2,400 4,800 9,600 12,000 12-31-2021 نيا 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 12-31-2019 12-31-2020 12-31-2021 Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

The solved ones are correct hence solving only the unsolved one.

Double declining rate = 2/4 = 50%

Date	Asset cost	Book value	DOB Rate	Depreciation expense	Accumulated depreciation	Book value
1-2-2018	15000					15000
12-31-2018		15000	50%	7500	7500
12-31-2019		7500	50%	3750	11250
12-31-2020		3750		750	12000	3000
12-31-2021		3000		0	12000	3000

2. Method that tracks the wear and tear on the equipment most​ closely - Units of production method.