Round to the nearest dollar, and show computations.
1. Prepare a depreciation schedule for the asset, using
a. Straight- line depreciation.
b. Declining- balance depreciation, using a 40% rate.
c. Service- hours depreciation.
2. Express straight- line depreciation as a percentage of original cost.
3. Explain whether:
a. The rate of 40% was a good choice for declining- balance depreciation.
b. The 20,000 estimate of total service hours was accurate.