Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $7,500 Years 5 Residual value $300 Service hours 6,000 Productive output (units) 14,400 Required Compute annual depreciation using each of the following methods. a. Straight line depreciation: Compute the depreciation rate and amount for each year, Depreciation Rate 20 X 2020 2021 2022 2023 2024 Depreciation Expense $ 1,440$ 1,440 $ 1,440 $ 1,440 $ 1,440 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 1,320 service hours of actual operation Depreciation Rate 1.22 2020 Depreciation Expense OX 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 2,400 units of output Depreciation Rate OX 2020 0 x Depreciation Expense $ d. Sum-of-the-years-digits method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 0 x $ 0 x $ Ox $ 0 * $ e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 0 X 5 2021 0 x $ 2022 Ox $ 2023 0 X $ 2024 0 X