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Depreciation Methods: Mendez Company purchased an equipment on January 2, 2021, for $80,000. The equipment has the following characteristics: Estimated service life Estimated residual value 8 years, 24,000 hours, 100,000 units $8,000 During 2021 and 2022, the company used the equipment for 2,500 units and 3,000 hours respectively, and produced 12,000 and 15,000 units respectively. REQUIRED: Compute depreciation expense for 2021 and 2022 under each of the following methods: 1 2 3 Straight-line methos Activity method based on hours worked (round to 2 decimal places) Activity method based on units of output (round to 2 decimal places) Sum-of-the years' digits method 4 5 Double-declining-balance method. 150% declining balance 6

I. Depreciation Methods: Mendez Company purchased an equipment on January 2,2021 , for $80,000. The equipment has the following characteristics: Estimated service life 8 years, 24,000 hours, 100,000 units Estimated residual value $8,000 During 2021 and 2022, the company used the equipment for 2,500 units and 3,000 hours respectively, and produced 12,000 and 15,000 units respectively. REQUIRED: Compute depreciation expense for 2021 and 2022 under each of the following methods: \begin{tabular}{ll} 1 & Straight-line methos \\ 2 & Activity method based on hours worked (round to 2 decimal places) \\ 3 & Activity method based on units of output (round to 2 decimal places) \\ 4 & Sum-of-the years' digits method \\ \hline 5 & Double-declining-balance method. \\ 6 & 150% declining balance \end{tabular}

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