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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $56, 340. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $1,740. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,400 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 i Year Year 1 Year 2 Year 3 Year 4 b. Units of activity method Year Year 1 Year 2 10000 10000 Year 3 Year 4

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $56, 340. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $1,740. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,400 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 i Year Year 1 Year 2 Year 3 Year 4 b. Units of activity method Year Year 1 Year 2 10000 10000 Year 3 Year 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $56, 340. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $1,740. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,400 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 Year 20 Year 3 Year 4 b. Units of activity method. Year Year 1 Year 2 Year 3 Year 4 Amount Amount
Transcribed Image Text:Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $56, 340. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $1,740. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,400 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 Year 20 Year 3 Year 4 b. Units of activity method. Year Year 1 Year 2 Year 3 Year 4 Amount Amount
b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year c. Double-declining-balance method Year 1 Year 2 Year 3 Amount Year 4 0000 Amount 0000
Transcribed Image Text:b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year c. Double-declining-balance method Year 1 Year 2 Year 3 Amount Year 4 0000 Amount 0000
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