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Depreciation by Three Methods; Partial Years residual value of $1,710. The Perdue Company purchased equipment on April 1 for $46,510. The equipment was expected to
Depreciation by Three Methods; Partial Years residual value of $1,710. The Perdue Company purchased equipment on April 1 for $46,510. The equipment was expected to have a useful life of three years, or 6,400 operating hours, and equipment was used for 1,200 hours during Year 1, 2,200 hours in Year 2, 1,900 hours in Year 3, and 3,733.333333 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 values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Amount $ 11,200 Year 1 Year 2 14,933 Year 3 14,933 Year 4 3,733 b. Units-of-activity method Year Amount Year 1 $ 8,400 X Year 2 $ Year 3 $ Year 4 C. Double-declining-balance method Year Amount Year 1 Year 2 Note: Round all values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $ 11,200 Year 2 $ 14,933 Year 3 $ 14,933 Year 4 $ 3,733 b. Units-of-activity method Year Amount Year 1 $ 8,400 X 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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