Question
Perdue Company purchased equipment on April 1 for $43,590. The equipment was expected to have a useful life of three years, or 6,000 operating hours,
Perdue Company purchased equipment on April 1 for $43,590. The equipment was expected to have a useful life of three years, or 6,000 operating hours, and a residual value of $1,590. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 1,000 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 final values for each depreciation method and each year to the nearest whole dollar.
Use the double declining balance method and determine the amount of depreciation for year 1, 2,3 and 4
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