Computing Depreciation Using Various Depreciation Methods The following data are available for equipment purchased on January 1 of the current year. Cost and residual value Estimated service life: Acquisition cost Years 5 Residual value Service hours 10,000 Productive output (units) 24,000 Required Compute annual depreciation using each of the following methods. a. Straight-line depreiation: Compute the depreciation rate and amount for each year. Note: Enter the rate in decimal form (such as 0.10) and not as a percentage. Depreciation Rate Depreciation Expense $ $12,500 $500 Year 1 $ Year 1 $ Year 2 $ $ Year 3 b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. Depreciation rate per service hour $ Year 1 $ $ Depreciation Expense $ c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 4,000 units of output. Depreciation rate per unit $ Year 1 Year 4 Depreciation Expense $ d. Sum-of-the-years'-digits method: Compute the depreciation amount for each year. Year 2 Year 3 Year 4 Year 5 $ $ Year 5 $ Double-declining-balance method: Compute the depreciation amount for each year.

Computing Depreciation Using Various Depreciation Methods The following data are available for equipment purchased on January 1 of the current year. Required Compute annual depreciation using each of the following methods. a. Straight-line deprepiation: Compute the depreciation rate and amount for each year. Note: Enter the rate in decimal form (such as 0.10 ) and not as a percentage. b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 4,000 units of output. d: Compute the depreciation amount for each year. Computing Depreciation Using Various Depreciation Methods The following data are available for equipment purchased on January 1 of the current year. Required Compute annual depreciation using each of the following methods. a. Straight-line deprepiation: Compute the depreciation rate and amount for each year. Note: Enter the rate in decimal form (such as 0.10 ) and not as a percentage. b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 4,000 units of output. d: Compute the depreciation amount for each year