Problem 9-3A

Determine the amount of depreciation expense for the years ended December 31, 2012, 2013, and 2014, by (a) the straight-line method, (b) the units-of-output method, and (c) the double declining balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: What method yields the highest depredation expense for 2012? What method yields the most depreciation over the three-year life of the equipment? Depreciation by three methods; partial years Perdue Company purchased equipment on April 1, 2012, 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 2012, 5, 500 hours in 2013, 4.000 hours in 2014, and 1,000 hours in 2015. Determine the amount of depreciation expense for the years ended December 31, 2012. 2013, 2014, and 2015, by (a) the straight line method, (b) the unit-of-output method, and (c) the double-declining-balance method. Depreciation by two methods; salt of fixed asset New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depredation expense each year On the basis of the data presented to the manager, the double-declining-balance method was selected