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Piercesome Company purchased tool sharpening equipment on October 1 for $408,000. The new equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200. The equipment was used for 1,350 hours during year 1,4,200 in year 2,3,650 hrs. in year 3 , and 2,800 hours in year 4 . 1 As Piercesome Company's accountant, the CEO Sam Spear requested a calendar year depreciation expense schedule and the book value for year 1 , year 2 , year 3 , and year 4. Prepare depreciation schedules for the following methods to determine which would best facilitate the company. a. straight-line method b. units of activity method c. double declining balance method 2. Review the depreciation methods and compare and contrast why Piercesome should choose one method over the others . 3. Journalize the sale of the sharpening equipment at the end of year three for $2,500. Piercesome Company purchased tool sharpening equipment on October 1 for $408,000. The new equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200. The equipment was used for 1,350 hours during year 1,4,200 in year 2,3,650 hrs. in year 3 , and 2,800 hours in year 4 . 1 As Piercesome Company's accountant, the CEO Sam Spear requested a calendar year depreciation expense schedule and the book value for year 1 , year 2 , year 3 , and year 4. Prepare depreciation schedules for the following methods to determine which would best facilitate the company. a. straight-line method b. units of activity method c. double declining balance method 2. Review the depreciation methods and compare and contrast why Piercesome should choose one method over the others . 3. Journalize the sale of the sharpening equipment at the end of year three for $2,500

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