Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $73,440. The equipment was expected to have a useful life of 3 years, or 5,940 operating hours, and a residual value of $2,160. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 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: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 Year 2 $ Year 3 Year 4 Amount 17,820 23,760 23,760 5,940 c. Double-declining-balance method Amount 13,200 25,200 21,600 11,280 Amount 36,720 X 24,480 ✔ 8,160 X 2,720 X

Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $73,440. The equipment was expected to have a useful life of 3 years, or 5,940 operating hours, and a residual value of $2,160. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 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: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Year Year 1 Year 2 Year 3 Year 4 b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 Year 2 $ Year 3 Year 4 Amount 17,820 23,760 23,760 5,940 c. Double-declining-balance method Amount 13,200 25,200 21,600 11,280 Amount 36,720 X 24,480 ✔ 8,160 X 2,720 X

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Description: please answer with all working, Please provide answer in text (Without image) Depreciation by three methods; partial yearsPerdue Company purchased equipment on April 1 for $73,440. The equipment was expectedto have a useful life of 3 years, or 5,940

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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