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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $30,510. The equipment was expected to have a useful life
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $30,510. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $810. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 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) units-of-output method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the 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 7,425 Year 2 9,900 Year 3 9,900 Year 4 2,475 Year Year 1 Year 2 b. Units-of-output method Amount 5,500 10,500 Year 3 9,000 Year 4 4,700 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 15,255 X 10,170 3,390 1,935 X
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