It's Really Chicken! bought equipment on January 1 2018, for $22,600.
The equipment was expected to remain in service for 4 years and to perform 3,460 fry jobs.
At the end of the equipment's useful life, It's Really Chicken! estimates that its residual value will be $2,900.
The equipment performed 300 jobs the first year, 1,000 the second year, in the third year it did 1,460 jobs, and the fourth year, 700.
Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods.
Note: Input rates as the decimal value.
Straight-Line Depreciation Schedule
Depreciation for the Year
Asset Depreciable Depreciation Depreciation Accumulated
Cost
Expense Depreciation
Date
Cost
Rate
01/01/18 $22,600
12/31/18
12/31/19
12/31/20
12/31/21
Book Value
$22,600
Units-of-Production Depreciation Schedule
Depreciation for the Year
Number of
Units
Asset Depreciation per
Date
Cost
Unit
01/01/18 $22.600
12/31/18
12/31/19
12/31/20
12/31/21
Depreciation
Expense
Accumulated
Book Value
Depreciation
$22,600
Double-Declining Balance Depreciation Schedule
Depreciation for the Year
Asset
Date
Book Value DDB Rate
Cost
01/01/18 $22,600
12/31/18
12/31/19
12/31/20
12/31/21
Depreciation Accumulated
Expense Depreciation
Book Value
$22,600