Chapter $9$ Homework

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Depreciation by three methods; partial years

Perdue Company purchased equipment on April $1$ for $$76,680.$ The equipment was expected to have a useful life of $3$ years, or $6,480$ operating hours, and a residual value of $$2,160.$ 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 $12$

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