Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on October 1 for $29,650. The equipment was expected to have a useful life of three years, or 4,000 operating hours, and a residual value of $1,650. The equipment was used for 700 hours during Year 1, 1,400 hours in Year 2, 1,200 hours in Year 3, and 700 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 2,333 Year 2 9,333 Year 3 9,333 Year 4 7,000 b. Units-of-activity method Year Amount Year 1 4,900 Year 2 9,800 Chapter 9 Exercises & Problems eBook Print Item Year Amount 1. PR.09.01B.ALGO Year 1 $ 4,900 2. PR.09.02B.ALGO Year 2 9,800 3. PR.09.03B.ALGO Year 3 8,400 4. PR.09.04B.ALGO Year 4 4,900 C. Double-declining-balance method 5. PR.09.05B.ALGO Year Amount 6. PR.09.06B.ALGO Year 1 4,942 Year 2 7. MAD.09.04 16,472 Year 3 13,727 x 8. MP.09.01.ALGO Year 4 1,096 X Feedback Check My Work Asset cost minus residual value equals depreciable cost. Straight-line method allocates the depreciable cost of the asset equally over the period of use. Sum the yearly depreciation to determine total depreciation. Annual units-of-activity depreciation allocates the cost of the asset equally over the units produced (hours). The double-declining rate is two times the straight-line rate. Book value is the asset cost minus accumulated depreciation