Question: Depreciationby Three Methods; Partial Years Fill in dollar amount for each year Perdue Company purchased equipment on April 1 for $39,960. The equipment was expected
Depreciationby Three Methods; Partial Years
Fill in dollar amount for each year
Perdue Company purchased equipment on April 1 for $39,960. The equipment was expected to have a useful life of three years, or 4,860 operating hours, and aresidual valueof $1,080. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 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) thestraight-line method, (b)units-of-output method, and (c) thedouble-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
a. Straight-line method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
b. Units-of-output method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
c. Double-declining-balance method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help