Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,430. 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.

image text in transcribed

(I only need assistance with part C)

a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 Amount 21,060 28,080 28,080 7,020 v b. Units-of-output method Year Year 1 Year 2 Year 3 Year 4 Amount 15,600 V 29,900 24,700 14,040 V c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 43,335X 14,445X 4,815 X 1,605 X 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago