Question
Perdue Company purchased equipment on April 1 for $75,060. The equipment was expected to have a useful life of three years, or 5,400 operating hours,
Perdue Company purchased equipment on April 1 for $75,060. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and aresidual valueof $2,160. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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) thestraight-line method, (b)units-of-activity method, and (c) thedouble-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
YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $
b.Units-of-activity method
YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $
c.Double-declining-balance method
YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $
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