Depreciation by three methods; partial years

Perdue Company purchased equipment on April $1$ for $$50,490.$ The equipment was expected to have a useful life of $3$ years, or $3,780$ operating hours, and a residual value of $$1,350.$ The equipment was used for $700$ hours during Year $1,1,300$ hours in Year $2,1,100$ hours in Year $3,$ and $680$ 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 $12$

Feedback Area

Feedback

Asset cost minus residual value equals depreciable cost. Straight$-$line method allocates the depreciable cost of the asset equally over the period of use. Sum the yearly depreciation to determine total depreciation.

Annual units$-$of$-$activity depreciation allocates the cost of the asset equally over the units produced $($hours$).$

The double$-$declining rate is two times the straight$-$line rate. Book value is the asset cost minus accumulated depreciation.

Compare the total depreciation for all methods over the time period. Recall that straight$-$line method allocates the depreciable cost of the asset equally over the period of use, while double$-$declining$-$balance method is an accelerated method.