PR 10-3A

Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk () will appear to the right of an incorrect entry. Depreciation Expense Straight Line Units-of- Activity Double Declining Balance Year Year 1 Year 2 Year 3 Year 4 Totals Calculations: 26 27 28 29 Straighine method: For full year: Cost Residus Val Year's Yearly Depreciation For part years: Year 1 Depreciation Portion of Year 33 34 35 38 Depreciation 37 Year 4 Depreciation Portion of Year Depreciation 39 40 41 Units-of-activity method: Residual Value Total Hours Rate Rate Hours Yearly Deprecies 45 46 47 Yeart Year 2 Years Year 4 49 50 51 52 Double-declining balance method Depreciate Balance Pr. 10-3 Rate * Portion of Year Yearly Depreciation Ready S. Paste Merge & Center E31 B D E L N 22 Year 3 Year 4 Totals 24 25 20 Calculations: 23 Straight line method: For Mil year: Real Value Years Yearly Depreciation 31 For part years: Year 1 Depreciation Portion of Year Depreciation 33 34 35 36 37 Year 4 Depreciation Portion of Year Depreciation 39 40 Units of activity method: Cout Residual Value Rate Hours Yearly Depreciation 45 46 47 48 49 Year 1 Year 2 Year Year 4 Yearly Depreciation 52 53 54 55 56 57 Double-declining balance method Depreciate Balance Portion of Year Year 1 Year 2 Year Since depreciation cannot cause book value to fall below residual value Depreciate Balance Value Yearly Depreciation Year 4 59 60 61 63 64 65 Pe 10.3 Ready 5,250 . PR 10-3A Depreciation by three methods; partial years OBJ. 2 Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4. Instructions 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