Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $270,000....
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Accounting
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 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) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.
a. Straight-line method
Year
Amount
Year 1
$
Year 2
$
Year 3
$
Year 4
$
b. Units-of-output method
Year
Amount
Year 1
$
Year 2
$
Year 3
$
Year 4
$
c. Double-declining-balance Method
Year
Amount
Year 1
$
Year 2
$
Year 3
$
Year 4
$
Answer & Explanation
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