E9-20 Computing depreciation--three methods Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equip- ment was expected to remain in service for four years and to operate for 6,750 hours At the end of the equipment's useful life, Crispy's estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the sec ond year, 2,700 hours the third year, and 1,350 hours the fourth year Requirements pare a schedule of depreciation expense, acumulated depreciation, and book value per for the equipment under the three depreciation methods: straight-line, units- of-production, and double-declining-balance. Show your computations. Note: Thre year depreciation schedules must he prepared. 2. Which method tr acks th e wear and tear on the equipment most closely?
E9-20 Computing depreciation--three methods Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equip- ment was expected to remain in service for four years and to operate for 6,750 hours At the end of the equipment's useful life, Crispy's estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the sec ond year, 2,700 hours the third year, and 1,350 hours the fourth year Requirements pare a schedule of depreciation expense, acumulated depreciation, and book value per for the equipment under the three depreciation methods: straight-line, units- of-production, and double-declining-balance. Show your computations. Note: Thre year depreciation schedules must he prepared. 2. Which method tr acks th e wear and tear on the equipment most closely?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E9-20 Computing depreciation--three methods
Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equip-
ment was expected to remain in service for four years and to operate for 6,750 hours
At the end of the equipment's useful life, Crispy's estimates that its residual value will
be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the sec
ond year, 2,700 hours the third year, and 1,350 hours the fourth year
Requirements
pare a schedule of depreciation expense, acumulated depreciation, and book value per
for the equipment under the three depreciation methods: straight-line, units-
of-production, and double-declining-balance. Show your computations. Note: Thre
year
depreciation schedules must he prepared.
2. Which method tr
acks th
e wear and tear on the equipment most closely?
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