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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $31,720. The equipment was expected to have a useful life of
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $31,720. The equipment was expected to have a useful life of three years, or 4,300 operating hours, and a residual value of $1,620. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 2,508.333333 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 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 $
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