Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $39,540. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,740. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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.

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,540. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,740. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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 Amount Year 1 $ 9,450 Year 2 $ 12,600 Year 3 12,600 Year 4 3,150 b. Units-of-activity method Year Amount Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Amount Year 1 19,770 Year 2 $ 13,180 Year 3 4,393 Year 4