Computing depreciation-three methods Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6, 750 hours. At the end of the equipment's useful life, Crispy's estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2, 025 hours the second year, 2, 700 hours the third year, and 1, 350 hours the fourth year. Requirements Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units- of-production, and double-declining-balance. Show your computations. Which method tracks the wear and tear on the equipment most closely? Changing an asset's useful life and residual value Salem Hardware Consultants purchased a building for $540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $100,000. After using the building for 15 years Salem realized that