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 $1$ of the current year.

$\backslash$table$[[$Cost and residual value,,Estimated service life:,$],[$Acquisition cost$,$$$37,500,$Years,$5],[$Residual value,$$1,500,$Service hours,$30,000],[,,$Productive output $($units$),72,000]]$

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.

$\backslash$table$[[$Depreciation Rate$],[,$Year $1,$Year $2,$Year $3,$Year $4],[$Depreciation Expense,$$,$$$,$$$,$$