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Perdue Company purchased equipment on April 1 for $39,960. The equipment was expected to have a useful life of three years, or 4,320 operating hours,
Perdue Company purchased equipment on April 1 for $39,960. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $1,080. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 hours in Year 4.
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-output method (c) the double-declining-balance method.
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