Note:
2.Which method tracks the wear and tear on the equipment most?
3. Depreciation schedule must be prepared.
Requirement 1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. Begin with straight-line depreciation.
Crackling Fried Chicken bought equipment January 2, 2010 for 33,000 dollars.
The equipment was expected to remain in service 4 years and to perform 7,500 fry jobs.
At the end of the equipments useful life, Cracklin estimates that its residual value will be 3,000.
The equipment performed 750 jobs the first year, 2, 250 the second year, 3, 000 the third year and
1,500 the fourth year.
Requirements:
PREPARE a schedule of depreciation expense per year under the 3 depreciation methods.
Begin with straightline depreciation.
St_________ – ___________ = _____ Divided by _________ = Depreciation expence
