Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Perdue Company purchased equipment on October 1 for $42,280. The equipment was expected to have a useful life of three years, or 5,800 operating hours,

Perdue Company purchased equipment on October 1 for $42,280. The equipment was expected to have a useful life of three years, or 5,800 operating hours, and a residual value of $1,680. The equipment was used for 1,000 hours during Year 1, 2,000 hours in Year 2, 1,700 hours in Year 3, and 1,100 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.

a. Straight-line method

Year Amount
Year 1 $fill in the blank 1
Year 2 $fill in the blank 2
Year 3 $fill in the blank 3
Year 4 $fill in the blank 4

b. Units-of-activity method

Year Amount
Year 1 $fill in the blank 5
Year 2 $fill in the blank 6
Year 3 $fill in the blank 7
Year 4 $fill in the blank 8

c. Double-declining-balance method

Year Amount
Year 1 $fill in the blank 9
Year 2 $fill in the blank 10
Year 3 $fill in the blank 11
Year 4 $fill in the blank 12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions