Reference no: EM131715000

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $67,500. The equipment was expected to have a useful life of three years, or 4,860 operating hours, and a residual value of $1,890. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 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 multiplier to four decimal places. Then 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 $