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 $ 3 2 , 6 7 0 . The equipment was

Depreciation by three methods; partial years
Perdue Company purchased equipment on April 1 for $32,670. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $1,080. The equipment was used for 900 hours during Year 1,1,700 hours in Year 2,1,500 hours in Year 3, and 760 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

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

Step: 3

blur-text-image

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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

77639731, 978-0077639730

More Books

Students also viewed these Accounting questions

Question

SITXMGT005 Briefly describe the four-stage negotiation process

Answered: 1 week ago

Question

How did James Lee Witt improve, FEMA?

Answered: 1 week ago

Question

Why was the response to Hurricane Katrina so ineffective?

Answered: 1 week ago