Fried Chicken bought equipment on January 22, 2016 for $36,000. The equipment was expected to remain in service for four years and to perform6,000 fry jobs. At the end of the equipment’s useful life, Delicious estimates that its residual value will be $6,000.
The equipment performed 600 jobs the first year, 1,800 the second year, 2,400 the third year, and 1,200 the fourth year.
|1.||Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods. Show your computations. Note: Three depreciation schedules must be prepared.|
|2.||Which method tracks the wear and tear on the equipment most closely?|