Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $47,520. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $1,350. 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 $ $ $ Amount

Depreciation by three methods; partial years Perdue Company purchased equipment on April 1 for $47,520. The equipment was expected to have a useful life of 3 years, or 4,860 operating hours, and a residual value of $1,350. 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 $ $ $ Amount

Name: Subject : Accounting b. Units-of-activity methodYearYear 1Year 2Year 3
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Description: Subject : Accounting b. Units-of-activity methodYearYear 1Year 2Year 3Year 4c. Double-declining-balance methodYearYear 1Year 2Year 3Year 4Amount$Amount Depreciation by three methods; partial yearsPerdue Company purchased equipment on April 1 for $47,

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 19E

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