Depreciation by Three Methods Partial Years Layton Company purchased tool sharpening equipment on October 1 for $19,980 The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $540 The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 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 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 $ Year 2 $ Year 3 $ Year 4 $ b Units of activity method Year Amount Year 1 $ Year 2 $ Year 3 $ Year 4 $ c Double declining balance method Year Amount Year 1 $ Year 2 $ Year 3 $ Year 4 $ Prior to adjustment at the end of the year, the balance in Trucks is $298,988 and the balance in Accumulated DepreciationTrucks is $101,200 Details of the subsidiary ledger are as follows Estimated Accumulated Depreciation at Miles Operated Truck No Cost Residual Value Useful Life Beginning of Year During Year 1 $85,360 $14,940 251,500 miles 20,400 miles 2 51,100 6,040 300,400 miles $14,930 32,500 miles 3 76,450 13,830 202,000 miles 61,330 8,100 miles 4 86,078 22,520 235,400 miles 24,940 22,300 miles A Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar B Journalize the entry on Dec 31 to record depreciation for the year Refer to the Chart of Accounts for exact wording of account titles A Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar Truck No Rate per Mile Miles Operated Credit to Accumulated Depreciation 1 20,400 2 32,500 3 8,100 4 22,300 Total

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Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for $19,980. The equipment was expected to have a useful

Depreciation by Three Methods; Partial Years

Layton Company purchased tool sharpening equipment on October 1 for $19,980. The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $540. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 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 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	$
Year 2	$
Year 3	$
Year 4	$

b. Units-of-activity method

Year	Amount
Year 1	$
Year 2	$
Year 3	$
Year 4	$

c. Double-declining-balance method

Year	Amount
Year 1	$
Year 2	$
Year 3	$
Year 4	$

Prior to adjustment at the end of the year, the balance in Trucks is $298,988 and the balance in Accumulated DepreciationTrucks is $101,200. Details of the subsidiary ledger are as follows:

		Estimated		Accumulated Depreciation at	Miles Operated
Truck No.	Cost	Residual Value	Useful Life	Beginning of Year	During Year
1	$85,360	$14,940	251,500 miles		20,400 miles
2	51,100	6,040	300,400 miles	$14,930	32,500 miles
3	76,450	13,830	202,000 miles	61,330	8,100 miles
4	86,078	22,520	235,400 miles	24,940	22,300 miles

Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar.

Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar.