Question
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $46,050. The equipment was expected to have a useful life of
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $46,050. The equipment was expected to have a useful life of three years, or 6,300 operating hours, and a residual value of $1,950. The equipment was used for 1,100 hours during Year 1, 2,200 hours in Year 2, 1,900 hours in Year 3, and 1,100 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 | $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 |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
