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. Which method tracks the wear and tear on the equipment most​ closely?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Seconds Fried Chicken bought equipment on
January 2​, 2018,​ for $30,000. The equipment was expected to remain in service for four years and to operate for 6,00 hours. At the end of the​ equipment's useful​ life, Seconds estimates that its residual value will be
$6,000. The equipment operated for 600 hours the first​ year, 1,800 hours the second​ year, 2,400 hours the third​ year, and 1,200 hours the fourth year.
 
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?

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