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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $59,940. The equipment was expected to have a useful life of
- Depreciationby Three Methods; Partial Years
- Perdue Company purchased equipment on April 1 for $59,940. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and aresidual valueof $1,620. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 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) thestraight-line method, (b)units-of-output method, and (c) thedouble-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.
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