Computing Depreciation Using Various Depreciation Methods

The following data are available for equipment purchased on January $1$ of the current year.

Cost and residual valueEstimated service life:Acquisition cost

$$12,500$

Years$5$Residual value$$500$Service hours$10,000$Productive output $($units$)24,000$

Required

Compute annual depreciation using each of the following methods.

a$.$ Straight$-$line depreciation: Compute the depreciation rate and amount for each year.

Note:Enter the rate in decimal form $($such as $0\mathrm{.}10)$ and not as a percentage.

Depreciation RateAnswer $1$