Perdue Company purchased equipment on April 1 for $45,630. The equipment was expected to have a...

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Perdue Company purchased equipment on April 1 for $45,630. The equipment was expected to have a useful life of three years, or 6,300 operating hours, and a residual value of $1,530. The equipment was used for 1,100 hours during Year 1, 2,200 hours in Year 2, 1,900 hours in Year 3, and 1,100 hours in Year 4. Required A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life. 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 11,025 Year 2 14,700 Year 3 14,700 Year 4 3,675 b. Units-of-activity method. Year Amount Year 1 7,700 Year 2 15,400 Year 3 13,300 Year 4 7,700 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3 Year 4 22,816 X 15,210 6,074 X 0X Perdue Company purchased equipment on April 1 for $45,630. The equipment was expected to have a useful life of three years, or 6,300 operating hours, and a residual value of $1,530. The equipment was used for 1,100 hours during Year 1, 2,200 hours in Year 2, 1,900 hours in Year 3, and 1,100 hours in Year 4. Required A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life. 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 11,025 Year 2 14,700 Year 3 14,700 Year 4 3,675 b. Units-of-activity method. Year Amount Year 1 7,700 Year 2 15,400 Year 3 13,300 Year 4 7,700 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3 Year 4 22,816 X 15,210 6,074 X 0X

Answer rating: 100% (QA)

a Straightline method 1 Depreciable cost Cost of equipment Residual value 45630 1530 44100 2 Annual ... View the full answer