Homework Help is Here – Start Your Trial Now!
Business
Accounting
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Year 1 Amount 12,075 ✓ 16,100 Year 2 Year 3 16,100 Year 4 4,025 b. Units-of-activity method Year Amount Year 1 8,400 Year 2 16,800 Year 3 14,700 Year 4 8,400 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Amount 25,021 X 16,680 5,644 X Year 4 955 X

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Year 1 Amount 12,075 ✓ 16,100 Year 2 Year 3 16,100 Year 4 4,025 b. Units-of-activity method Year Amount Year 1 8,400 Year 2 16,800 Year 3 14,700 Year 4 8,400 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Amount 25,021 X 16,680 5,644 X Year 4 955 X

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
See similar textbooks
icon
Related questions
Question
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Year 1 Amount 12,075 ✓ 16,100 Year 2 Year 3 16,100 Year 4 4,025 b. Units-of-activity method Year Amount Year 1 8,400 Year 2 16,800 Year 3 14,700 Year 4 8,400 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Amount 25,021 X 16,680 5,644 X Year 4 955 X
Transcribed Image Text:Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Year 1 Amount 12,075 ✓ 16,100 Year 2 Year 3 16,100 Year 4 4,025 b. Units-of-activity method Year Amount Year 1 8,400 Year 2 16,800 Year 3 14,700 Year 4 8,400 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Amount 25,021 X 16,680 5,644 X Year 4 955 X
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS