Depreciationby Three Methods; Partial Years

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $42,930. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $1,350. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 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 straightline method, (b) the units-of- activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the nal multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year1 $- J YearZ $- VI Year3 $- J Year4 $- J b. Units-ofactivity method Year Amount Year1 $- J YearZ $- VI Year3 $- J Year4 ism J c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3 Year 4 Feedback Check My Work Asset cost minus residual value equals depreciable cost. Straight-line method allocates the depreciable cost of the asset equally over the period of use. Sum the yearly depreciation to determine total depreciation. Annual units-of-activity depreciation allocates the cost of the asset equally over the units produced (hours). The double-declining rate is two times the straight-line rate. Book value is the asset cost minus accumulated depreciation. Compare the total depreciation for all methods over the time period. Recall that straight-line method allocates the depreciable cost of the asset equally over the period of use, while double-declining-balance method is an accelerated method