Question
Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of 3 years, or 7,020 operating hours,
Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of 3 years, or 7,020 operating hours, and a residual value of $2,430. The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 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: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar.
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