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. 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) Storm, Inc. purchased the following trading securities during 20Y9, its first year of operations:

Name		Number of Shares		Cost
Dust Devil, Inc.		1,900		$81,700
Gale Co.		850		68,000
Whirlwind Co.		2,850		114,000
	Total			$263,700

The market price per share for the trading security portfolio on December 31, 20Y9, was as follows:

	Market Price per Share,
	Dec. 31, 20Y9
Dust Devil, Inc.	$40
Gale Co.	75
Whirlwind Co.	42

a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 20Y9. If an amount box does not require an entry, leave it blank.

20Y9 Dec. 31		fill in the blank	fill in the blank
		fill in the blank	fill in the blank