Question
Perdue Company purchased equipment on April 1 for $54,150. The equipment was expected to have a useful life of three years, or 7,500 operating hours,
Perdue Company purchased equipment on April 1 for $54,150. The equipment was expected to have a useful life of three years, or 7,500 operating hours, and a residual value of $1,650. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,200 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 the double-declining-balance method.
Note: Round all final values for each depreciation method and each year to the nearest whole dollar.
Double-declining-balance method Year Amount
Year 1
Year 2
Year 3
Year 4
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