Question

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $35,100. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $1,080. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 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 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-activity 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	$

Please answer in the format I have provided,

Thanks

Answer 1

a. Straight-line method

Year	Amount
Year 1	(35100-1080/3*9/12) = 8505
Year 2	$11340
Year 3	$11340
Year 4	$2835

b. Units-of-activity method

Year	Amount
Year 1	$6300
Year 2	$11700
Year 3	$10350
Year 4	$5670

c. Double-declining-balance method

Year	Amount
Year 1	$23400*9/12 = 17550
Year 2	$23400*3/12+11700*9/12 = 14625
Year 3	$1845
Year 4	$0