eBook Depreciation by three methods; partial years Layton Company purchased tool sharpening equipment on October 1 for $81,810. The equipment was expected to have a useful life of 3 years or 7,560 operating hours, and a residual value of $2,430. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4.1 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 multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Amount 6,615 v Year 2 26,460 Year 3 Year 4 b. Units of activity method Year 26,460 19,845 Amount Year 1 14,700 Year 2 27,300 Check My Work Q Search - 4 Previous Next ENG 6:00 PM D 12/8/2023 Year 3 24,150 V Year 4 13,230 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Feedback Amount x Check My Work Asset cost minus residual value equals depreciable cost. Sum the yearly depreciation to determine total depreciation. Annual units-of-output depreciation allocates the cost of the asset equally over the hours operated (hours). The double declining rate is two times the straight-line rate. Book value is the asset cost minus accumulated depreciation. Compare the total depreciation for all methods over the time period. Recall that straight-line method allocates the depreciable cost of the asset over the period of use, while double-declining-balance method is an accelerated method. I Check My Work Previous