Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $57,510. The equipment was expected to have a useful life of

Depreciation by three methods; partial years

Perdue Company purchased equipment on April 1 for $57,510. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $1,620. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 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 final 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 $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

ASAP PLEASE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Textbook Of Cost And Management Accounting

Authors: Arora

10th Edition

9789325956209

More Books

Students also viewed these Accounting questions