1)

Perdue Company purchased equipment on April 1 for $66,690. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $1,890. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.

Required:

Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method

Year	Amount
Year 1	$fill in the blank 1
Year 2	$fill in the blank 2
Year 3	$fill in the blank 3
Year 4	$fill in the blank 4

b. Units-of-activity method

Year	Amount
Year 1	$fill in the blank 5
Year 2	$fill in the blank 6
Year 3	$fill in the blank 7
Year 4	$fill in the blank 8

c. Double-declining-balance method

Year	Amount
Year 1	$fill in the blank 9
Year 2	$fill in the blank 10
Year 3	$fill in the blank 11
Year 4	$fill in the blank 12

2)

Equipment with a cost of $648,800 has an estimated residual value of $64,300, has an estimated useful life of 35 years, and is depreciated by the straight-line method.

a. Determine the amount of the annual depreciation.

b. Determine the book value after 18 full years of use.

c. Assuming that at the start of the year 19 the remaining life is estimated to be 20 years and the residual value is estimated to be $56,200, determine the depreciation expense for each of the remaining 20 years.