Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of
Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of 3 years, or 3,780 operating hours, and a residual value of $1,350. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 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 final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 $ Year 2 $ b. Units-of-activity method Amount 12,285 16,380 16,380 4,095 Amount 9,100 16,900(NEED HELP ON DOUBLE-DECLINING BALANCE METHOD) Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful lufe of 3 years, or 3,780 operating hours, and a resldual vaiue of 31,350, The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the vears ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-af:activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then, round the answer for each year to the nearest whoie dollar. a. Straight-line method b. Units-of-activity method c. Double-declining-balance method
Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of 3 years, or 3,780 operating hours, and a residual value of $1,350. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 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 final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 $ Year 2 $ b. Units-of-activity method Amount 12,285 16,380 16,380 4,095 Amount 9,100 16,900(NEED HELP ON DOUBLE-DECLINING BALANCE METHOD)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started