Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $44,620. The equipment was expected to have a useful life of

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $44,620. The equipment was expected to have a useful life of three years, or 6,100 operating hours, and a residual value of $1,920. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 3,558.333333 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: Round all values for each depreciation method and each year to the nearest whole dollar.

a. Straight-line method Year Amount Year 1 $10675 Year 2 $14233 Year 3 $14233 Year 4 $3558

4 b. Units-of-activity method Year Amount Year 1 $ ? Year 2 $ ? Year 3 $ ? Year 4 $ ?

c. Double-declining-balance method Year 1 $ ? Year 2 $ ? Year 3 $ ? Year 4 $ ? I keep getting part b wrong and can't get to c.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions