E8-5B. Depreciation methods (Learning Objective 3) 1520 min.

Providence Chiropractic Clinic bought equipment on January 2 for $39,000. The equipment was expected to remain in service for four years and to perform 1,240 treatments. At the end of the equipments useful life, Providence Chiropractic Clinic estimates that its residual value will be $8,000. The equipment performed 124 treatments the first year, 372 the second year, 496 the third year, and 248 the fourth year.

Requirements

Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years under double-declining balance depreciation, the company switched to the straight-line method. Show your computations.

Which method most closely tracks the wear and tear on the equipment?