Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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 Amount Year Year 1 9,450 Year 2 9,450 X Year 3 9,450 X Year 4 9,450 X b. Units-of-activity method Amount Year Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 19,755 4,878 4,939 X 3,228 X

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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 Amount Year Year 1 9,450 Year 2 9,450 X Year 3 9,450 X Year 4 9,450 X b. Units-of-activity method Amount Year Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 19,755 4,878 4,939 X 3,228 X

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Description: None Depreciation by Three Methods; Partial YearsPerdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was u

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....

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