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Depreciation by Three Methods, Partial Years Perdue Company purchased equipment on April 1 for $65,590. The equipment was expected to have a useful life of
Depreciation by Three Methods, Partial Years Perdue Company purchased equipment on April 1 for $65,590. The equipment was expected to have a useful life of three years, ar 5,940 operating hours, and a residual value of $2,130. 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) the units-of-activity 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 $ 20,7907 Year 2 $ 27,720 Year 3 $ 27,720 6,930 Year 4 $ b. Units-of-activity method Year Amount Year 1 $ 15,400 Year 2 $ 29,400 Year 25,200 Year 4 13,160 C. Double-declining balance method Year Amount Year 1 $ 42,795 X Year 2 $ 28,530 Year 3 9,510 x Year 4 2,325 x
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