Computing Partial Period Depreciation under Multiple Depreciation Methods

To demonstrate the computations involved in several methods of depreciating a fixed asset, the following information

is provided.

Required

Compute the annual depreciation using each of the following methods assuming that the asset was purchased on

August $1$ of the current year.

a$.$ Straight$-$line depreciation: Compute the annual depreciation rate and amount for each year.

Carry all decimals in calculations; round final answers to the nearest dollar.

b$.$ Units$-$of$-$production method using service hours as a measure of input: Compute the depreciation rate and amount

for the first partial year assuming $1,350$ service hours of actual operation.

c$.$ Units$-$of$-$production method using units produced as a measure of output: Compute the depreciation rate and

amount for the first partial year assuming $2,700$ units of output.

d$.$ Sum$-$of$-$the$-$years'$-$digits method: Compute the depreciation amount for each year.

Carry all decimals in calculations; round final answers to the nearest dollar.

e$.$ Double$-$declining$-$balance method: Compute the depreciation amount for each year.

Carry all decimals in calculations; round final answers to the nearest dollar.