Last part **Chapter 10 Homework: Depreciation Methods****Scenario:**Southern Fried Chicken bought equipment on January 2, 2024, for $21,000. The equipment was expected to remain in service for four years and to operate for 4,500 hours. At the end of the equipment’s useful life, Southern Fried Chicken anticipated a residual value of $4,500.**Requirement 1: Prepare a schedule of depreciation expenses, accumulated depreciation, and book value per year for the equipment under three depreciation methods: straight-line, units-of-production, and double-declining-balance.**### Straight-Line Depreciation Schedule| Date | Asset Cost | Depreciation Expense | Useful Life (Years) | Accumulated Depreciation | Book Value ||------------|------------|----------------------|---------------------|--------------------------|-------------|| 12-31-2024 | $21,000 | $4,125 | 4 years | $4,500 | $16,500 || 12-31-2025 | | $4,125 | | $9,000 | $12,000 || 12-31-2026 | | $4,125 | | $13,500 | $7,500 || 12-31-2027 | | $4,125 | | $18,000 | $3,000 |**Calculate the depreciation expense per year using the formula**:\[\text{Depreciation expense per year} = \frac{\text{Asset cost} - \text{Residual value}}{\text{Useful life in years}}\]### Units-of-Production Depreciation ScheduleBefore calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit using the formula:\[\text{Depreciation per unit} = \frac{\text{Asset cost} - \text{Residual value}}{\text{Useful life in units}}\]Depreciation per unit = $(21,000 - 4,500) / 4,500 = $3.67| Date | Asset Cost | Depreciation per Unit | Number of Units | Depreciation Expense | Accumulated Depreciation | Book Value ||------------|------------|-----------------------|-----------------|----------------------|--------------------------|-------------

DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and tear, obsolescence.In other word depreciation means the gradual diminution, loss or shrinkage in the utility value of assets due to wear & tear in use, effluxion of time or introduction of new technology in the market.Method of Depreciation :Straight Line MethodDouble Declining Balance MethodWritten Down Value MethodUnits of Production MethodSum of Years Digit MethodRate of Depreciation Expense := (100% ÷ Estimated Useful Life) * 2= (100% ÷ 4) * 2= 50%REQUIREMENT # :— FINAL ANSWERRequirement #1 :— Double Declining Balance Depreciation Schedule DateAssets Cost Book Value DDB RateDepreciation Expense Accumulated DepreciationBook Value 1-2-2024$21,00012-31-2024$21,000*50%=$10,500$10,500$10,50012-31-2025$10,500*50%=$5,250$15,750$5,25012-31-2026$5,250*50% or 42.86%=(5250-3000)$2,250$18,000$3,00012-31-2027$3,000*50% or 0%=$0$18,000$3,000Note : Use Depreciation Rate 50% or 42.86% for Year 2026 & Use 50% or 0% for Years 2027.

Business

Accounting

2023 MW 4:30pm k: Chapter 10 Homework st ve this K Southem Fried Chicken bought equipment on January 2, 2024, for $21,000. The equipment was expected to remain in service for four years and to operate for 4,500 hours. At the end of the equipment's useful life, Southem 1,800 hours the third year, and 900 hours the fourth year. Read the requirements. Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book vakie per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declin Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Date Cost 1-2-2024 $ 21,000 12-31-2024 12-31-2025 12-31-2026 12-31-2027 Etext pages ( $ Date Asset Depreciable Cost 1-2-2024 12-31-2024 12-31-2025 Cost 21,000 Type here to search S 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. Useful life in units = Depreciation per unit Residual value 3,000 )4 4,500 Prepare a depreciation schedule using the units-of-production method. Units-of-Production Depreciation Schedule Asset Cost Get more help. Depreciation for the Year Useful Life 18,000 18,000 + 18,000 + 18.000 + Asset Depreciation Cost Per Unit 21,000 $ Book Value 4 years 4 years 4 years 4 years Depreciation for the Year Number of Units Date 1-2-2024 S 12-31-2024 12-31-2025 12-31-2020 12-31-2027 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 4 x 4 4 x x Depreciation Accumulated Expense Depreciation $ DDB Rate Depreciation for the Year 21 7 = 4.500 S 4,500 4.500 4,500 450 M $ 1,350 = 1,800 = 900 = 4,500 9,000 13,500 18,000 Book Value $ 21,000 16,500 12,000 7,500 3,000 Depreciation Accumulated Expense Depreciation 1,800 $ 5,400 7,200 3,600 $ 1,800 7,200 14,400 18,000 Book Value $ Question 3, EF10-20 (similar to) 21,000 10.200 13,800 6,600 3,000 Depreciation Accumulated Book Expense Depreciation Value D