Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,630. The equipment was expected to have a useful life of

image text in transcribedimage text in transcribed

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,630. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,830. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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 final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 9,450 Year 2 9,450 X Year 3 9,450 x Year 4 9,450 b. Units-of-activity method Year Amount Year 1 7,340 X Year 2 13,946 x Year 3 11,744 x Year 4 6,606 X a. Straight-line method Year Amount Year 1 $ 9,450 Year 2 $ 9,450 X Year 3 $ 9,450 x Year 4 9,450 X b. Units-of-activity method Year Amount Year 1 7,340 X Year 2 $ 13,946 x Year 3 11,744 x Year 4 6,606 X c. Double-declining-balance method Year Amount Year 1 $ 19,815 Year 2 $ 9,908 x Year 3 4,954 x Year 4 $ 2,477 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Audit Defense A Management Audit Readiness Guide

Authors: Ed Danter

1st Edition

3030924653, 978-3030924652

More Books

Students also viewed these Accounting questions