Frito Inc. acquired equipment on January 1 at a cost of $24,000 that is estimated to have a useful life of five years and a residual value of $6,000. Required Prepare a depreciation schedule showing annual depreciation expense, and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-Line Method Sum-of-the Years'-Digits Method a. Straight-Line Depreciation Method Reporting Period Depreciation for the Period Depreciation Expense Jan. 1 Year 1 Dec. 31 Year 1 $ Dec. 31 Year 2 Dec. 31 Year 3 Dec. 31, Year 4 Dec. 31, Year 5 Accumulated Depreciation 6,000 x $ 0x 0x 0x 0x End of Period 6,000 x 0x 0x 0x 0x $ Double-Declining-Balance Method Book Value 24,000 ✓ 18,000 x 24,000 24,000 24,000 24,000

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating exp…

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset…