PR 9-3A 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 59,000. 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. A+ A Straight Line Depreciation Expense B. Units-of- Activity C Double-Declining Balance Year 1 2 3 Totals Calculations: Straight-line method: For full year: (Cost Residual Valu Years Yearty Depreciation For part years: Year 1 Depreciation - Portion of Year - Depreciation Year 4 Depreciation Portion of Year - Depreciation Units-of-activity method: (Cost Residual Valu Total Hours Rate Rate Hours Yearty Depreciation Year 1 Year 2 Year 3 Year 4 Double-declining-balance method: Depreciable Yearly Balance Rate Portion of Year - Depreciation Year 1 Year 2 Year 3 Since depreciation cannot cause book value to fall below residual value: Depreciable Residual Balance Value Yearly Depreciation Year 4