Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $90,180. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,700. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 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) units-of-output 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 $

Year 2 $

Year 3 $

Year 4 $

b. Units-of-output method

Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

c. Double-declining-balance method

Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $