Layton Company purchased tool sharpening equipment on October $1$ for $$25,380.$ The equipment was expected to have a useful life of $3$ years or $3,780$ operating hours, and a residual value of $$810.$ The equipment was used for $700$ hours during Year $1,1,300$ hours in Year $2,1,100$ hours in Year $3,$ and $680$ 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.

Answer rating: 100% (QA)

a StraightLine Method Year 1 25380 8100 3780 hours 700 hours 1400 Year 2 25380 8100 3780 hours 1300 ... View the full answer