Question
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.
(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 1Step by Step Solution
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