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1. Mama's Fried Chicken bought equipment on January 2, 2010, for $15,000. The equipment was expected to remain in service 4 years and to perform 3,000 fry jobs. At the end of the equipment's useful life, Mama's estimates that its residual value will be $3000. The equipment performed 300 jobs the first year, 900 the second year,1200 the third, and 600 the fourth year. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years under the double-declining-balance depreciation, the company switched to the straight-line method. Show your computations.
Note: 3 depreciation schedules must be prepared.
2. Which method tracks the wear and tear on the equipment most closely?
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