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 $22,500 Years 5 Residual value $900 Service hours 18,000 Productive output (units) 43,200 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 0.2 2020 2021 2022 2023 2024 Depreciation Expense $ 4,320$ 4,320$ 4,320$ 4,320$ 4,320 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 3,960 service hours of actual operation. Depreciation Rate 1.2 2020 4,752 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 7.200 units of output. Depreciation Rate 0.4 x 2020 Depreciation Expense $ 22,500 x d. Sum-of-the-years--digits method: Compute the depreciation amount for each year. 2020 2022 2023 2024 22,500 x $ 14,400 x $ 17,640 * $ 19,584 * $ 20,750.4 x 2021 $ e. Double-declining balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 $ 21,600 x $ 21,600 x $ 21,600 * $ 21,500 * $ 21,600 * Check