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Problem
Rita's Plzza bought equipment on January 2, 2014, for $50,000. The equipment was expected to remain in service for four years and to perform 48,000 pizza jobs. At the end of the equipment's useful life, Rita's estimates that its residual value will be $2,000. The equipment performed to 10,000 jobs the first year, 16,000 the third, and 7,000 the fourth year.
Requirments:
Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods. Show your computations.
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