question archive Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000
Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000
Subject:AccountingPrice: Bought3
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. 1. 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.
