Golden Fried Chicken bought equipment onJanuary2,2018, for$27,000.The equipment was expected to remain in service for...
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Golden Fried Chicken bought equipment onJanuary2,2018, for$27,000.The equipment was expected to remain in service for four years and to operate for5,250hours. At the end of the equipment's useful life,Goldenestimates that its residual value will be$6,000.The equipment operated for525hours the first year,1,575hours the second year,2,100hours the third year, and1,050hours the fourth year. Requirement 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. Note: Three depreciation schedules must be prepared.
Begin by preparing a depreciation schedule using the straight-line method.
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