Payroll Tax Entries

According to a summary of the payroll of Guthrie Co., $511,000 was subject to the 6.0% social security tax and $629,000 was subject to the 1.5% Medicare tax. Also, $17,000 was subject to state and federal unemployment taxes.

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $62,640. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of $1,890. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 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-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	Amount
Year 1	$fill in the blank 1
Year 2	$fill in the blank 2
Year 3	$fill in the blank 3
Year 4	$fill in the blank 4

b. Units-of-activity method

Year	Amount
Year 1	$fill in the blank 5
Year 2	$fill in the blank 6
Year 3	$fill in the blank 7
Year 4	$fill in the blank 8

c. Double-declining-balance method

Year	Amount
Year 1	$fill in the blank 9
Year 2	$fill in the blank 10
Year 3	$fill in the blank 11
Year 4	$fill in the blank 12

Payroll Tax Entries \$17;000 was subject to state and federat unemplayment toxes. a. Calculate the employer's payroil taxes, using the following rates: state unemployment, 4.246; federai unemployment, a .64 Remember bus there is typically a maxumum amount of narrings subject to state and foderal unemploymont tuxes. b. Joumalize the entry to record the accruat of payroll taxes. If an amount box does not require an entry, leave it blank