Homework Help is Here – Start Your Trial Now!
Business
Accounting
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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: Round all final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Amount Year Year 1 9,450 Year 2 9,450 X Year 3 9,450 X Year 4 9,450 X b. Units-of-activity method Amount Year Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 19,755 4,878 4,939 X 3,228 X

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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: Round all final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Amount Year Year 1 9,450 Year 2 9,450 X Year 3 9,450 X Year 4 9,450 X b. Units-of-activity method Amount Year Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount 19,755 4,878 4,939 X 3,228 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
Topic Video
Question
None
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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: Round all final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Year 1 Amount Year 2 Year 3 Year 4 b. Units-of-activity method 9,450 9,450 X 9,450 X 9,450 X Year Amount Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Amount Year 1 $ 19,755 Year 2 4,878 X Year 3 4,939 X Year 4 3,228 X
Transcribed Image Text:Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $39,510. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,710. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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: Round all final values for each depreciation method and each year to the nearest whole dollar. a. Straight-line method Year Year 1 Amount Year 2 Year 3 Year 4 b. Units-of-activity method 9,450 9,450 X 9,450 X 9,450 X Year Amount Year 1 7,000 Year 2 13,300 Year 3 11,200 Year 4 6,300 c. Double-declining-balance method Year Amount Year 1 $ 19,755 Year 2 4,878 X Year 3 4,939 X Year 4 3,228 X
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
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.
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