Equipment Purchased at the Beginning of the Fiscal Year for $360,000

Essay

Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods:
(a)straight-line
(b)units-of-output (1,200 hours first year; 2,250 hours second year)(c)double-declining-balance