Question: HW-Chapter Depreciation by Three Methods, Partial Years Perdue Company purchased equipment on April 1 for $43,860. The equipment was expected to have a useful life
HW-Chapter Depreciation by Three Methods, Partial Years Perdue Company purchased equipment on April 1 for $43,860. The equipment was expected to have a useful life of three years, or 6,000 operating hours, and a residual value of $1,860. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2. 1,800 hours in Year 3, and 1,000 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. Note: Round all final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 10.500 Year 2 14,000 Year 14.000 Yeard 2.500 b. Units-of-activity method Year Amount Yew 2,700 Year 2 14 700 Year 12.600 Year 4 7.000 c. Double-declining balance method Year Amount Yeart Year 2 14620 Yeu 4573 Year 4
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