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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on October 1 for $44,500. The equipment was expected to have a useful life of
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on October 1 for $44,500. The equipment was expected to have a useful life of three years, or 6,100 operating hours, and a residual value of $1,800. The equipment was used for 1,100 hours during Year 1,2,100 hours in Year 2, 1,800 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 b. Units-of-activity method c. Double-declining-balance method
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