Question
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $108,540. The equipment was expected to have a useful life of
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $108,540. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of $3,240. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 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 $ Year 2 $ Year 3 $ Year 4 $ 105,960 b. Units-of-activity 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 $
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