Homework Help is Here – Start Your Trial Now!
Business
Accounting
c. Double-declining-balance method Amount 14,985 X Year Year 1 Year 2 Year 3 Year 4 A ta A 9,990 3,330 X 278 X

c. Double-declining-balance method Amount 14,985 X Year Year 1 Year 2 Year 3 Year 4 A ta A 9,990 3,330 X 278 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $29,970. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $810. 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) 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 Year Year 1 b. Units-of-activity method Year 2 Year 3 Year 4 Year $ 5,400 ✔ 10,200 ✓ 9,000 4,560 ✔ c. Double-declining-balance method. Year 1 Year 2 $ Year 3 Year 4 $ Amount 7,290 9,720 ✓ 9,720 ✓ 2,430 ✓ $ $ Amount Amount 14,985 X 9,990 3,330 X 278 X
Transcribed Image Text:Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $29,970. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $810. 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) 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 Year Year 1 b. Units-of-activity method Year 2 Year 3 Year 4 Year $ 5,400 ✔ 10,200 ✓ 9,000 4,560 ✔ c. Double-declining-balance method. Year 1 Year 2 $ Year 3 Year 4 $ Amount 7,290 9,720 ✓ 9,720 ✓ 2,430 ✓ $ $ Amount Amount 14,985 X 9,990 3,330 X 278 X
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Employee Compensations and Benefits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS