E10-7 Computing Depreciation under Alternative Methods Sonic Corp. purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, Texas, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200 in year 1; 140,250 in year 2; and 53,550 in year 3. Required: Complete a depreciation schedule for each of the alternative methods using a format similar to the one that follows. 1. Straight line. 2. Units of production. 3. Double declining balance

INCOME STATEMENT Depreciation BALANCE SHEET Accumulated Year Computation Expense Cost Depreciation Book Value At acquisition 1