Question
Perdue Company purchased equipment on April 1 for $38,880. The equipment was expected to have a useful life of three years, or 7,560 operating hours,
Perdue Company purchased equipment on April 1 for $38,880. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $1080. 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 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, (c) the double-declining balance method.
for declining balance only, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
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