Method A Method B Method C Annual Annual Annual Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Year 2021 $ 4,000 $ 4,000 $ 8,800 $ $ $ 1,200 8,800 15,840 1,200 5,600 2022 4,000 8,000 7,040 6,800 Requirements 1. Identify the depreciation method used in each instance, and show the equation and computation for each; round to the nearest dollar. 2. Determine the annual depreciation expense, accumulated depreciation, and book value of the equipment for 2021 through 2023 under each method, assuming 12,000 units of production in 2023. Suppose FedEx purchased equipment on January 1, 2021, for $44,000. The expected useful life of the equipment is 10 years or 100,000 units of production, and its residual value is $4,000. Under three depreciation methods, the annual depreciation expense and the balance of accumulated depreciation at the end of 2021 and 2022 are B (Click the icon to view the data.) Read the requirements. Requirement 1. Identify the depreciation method used in each instance, and show the equation and computation for each; round to the nearest dollar. Begin by identifying the depreciation method used in each instance. Method A Depreciation method used Straight-Line Double-Declining-Balance Units-of-Production Method B Method C Now, select the equation and show the computation of depreciation under Method A. (Abbreviation used: Depr. = Depreciation) Cost Residual value . Useful life, in years = Method A depreciation 4,000 ( 44,000 4,000 . 10 = Next, select the equation and show the computation of depreciation under Method B. (Enter any depreciation rate as a decimal to two places, .XX.) Asset book value Depreciation rate per year Method B depreciation 2021 44,000 2 = 2022 = Finally, select the equation and show the computation of depreciation under Method C. (Enter any depreciation rate as a decimal to two places, .XX.) Cost Residual value - Method C depreciation 2021 X 2022 II Requirement 2. Determine the annual depreciation expense, accumulated depreciation, and book value of the equipment for 2021 through 2023 under each method, assuming 12,000 units of production in 2023. Begin with Method A. Method A Annual Accumulated Depreciation Expense Year Depreciation Book Value Start 44,000 2021 4,000 $ 4,000 40,000 2022 4,000 8,000 36,000 2023 4,000 12,000 32,000 Next, complete the table for Method B. Method B Annual Depreciation Accumulated Year Expense Depreciation Book Value Start 2021 $ 8,800 $ 8,800 2022 7,040 15,840 2023 Now, complete the table for Method C. Method C Annual Depreciation Accumulated Year Expense Depreciation Book Value Start 2021 $ 1,200 1,200 2022 5,600 6,800 2023