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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $41,700. The equipment was expected to have a useful life
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $41,700. The equipment was expected to have a useful life of three years, or 5,700 operating hours, and a residual value of $1,800. The equipment was used for 1,000 hours during Year 1, 2,000 hours in Year 2, 1,700 hours in Year 3, and 1,000 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 Year 1 Amount Year 2 Year 3 Year 4
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