Crispy Fried Chicken bought equipment on January 2​, 2018​, for $ 33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the​ equipment's useful​ life, Crispy estimates that its residual value will be $ 6,000. The equipment operated for 675 hours the first​ year, 2,025 hours the second​ year, 2,700 hours the third​ year, and 1,350 hours the fourth year.
Requirements
1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
2. Which method tracks the wear and tear on the equipment most closely?