On January 3, 2020, Xenex Innovations purchased computer equipment for $125,250. The equipment will be used in research and development activities for five years or a total of 8,500 hours and then sold for about $19,000. Prepare a schedule with headings as shown below. Calculate depreciation and book values for each year of the equipment?s life for each method of depreciation. Xenex?s year-end is December 31.

Analysis Component: Which method will result in the greatest:

a. Total assets being reported on the balance sheet in 2020? in 2023?

b. Operating expenses being reported on the income statement in 2020? in 2023?

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Units-of-Production Depreciation Expense Straight-Line Double-Declining-Balance Depreciation Expense Depreciation Book Value at Dec. 31 Book Value at Dec. 31 Book Value at Dec. 31 Year Expense "Assume actual usage In hours of: 2021 1,780 2020 1350 2022 2,400 2023 2,980 2024 2,700