**Depreciation by Three Methods; Partial Years**Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 7,020 operating hours, and a residual value of $2,430. The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 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) 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 | 21,660 || Year 2 | 28,080 || Year 3 | 28,080 || Year 4 | 7,020 |b. **Units-of-activity method**| Year | Amount ||-------|---------|| Year 1 | 15,600 || Year 2 | 30,000 || Year 3 | 25,200 || Year 4 | 13,440 |c. **Double-declining-balance method**| Year | Amount ||-------|---------|| Year 1 | | | Year 2 | 28,890 || Year 3 | | | Year 4 | | (Note: Not all values are provided for the double-declining-balance method in the image.)

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Description: **Depreciation by Three Methods; Partial Years**Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 7,020 operating hours, and a residual value of $2,430. The equipment was u

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eBook Depredation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three year The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 hours in Year Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) t the double-dedining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier four dedmal places. Then round the answer for each year to th a. Straight-line method Year Amount Year 1 21,060 Year 2 28,080 Year 3 28,080 Year 4 7,020 b. Units-of-activity method Year Amount Year 1 15,600 Year 2 30,000 Year 3 25,200 Year 4 13,440 e Double-dedining-balance methoc Year Amount Year 1 Year 2 28,890 Year 3 Year 4

eBook Depredation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three year The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 hours in Year Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) t the double-dedining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier four dedmal places. Then round the answer for each year to th a. Straight-line method Year Amount Year 1 21,060 Year 2 28,080 Year 3 28,080 Year 4 7,020 b. Units-of-activity method Year Amount Year 1 15,600 Year 2 30,000 Year 3 25,200 Year 4 13,440 e Double-dedining-balance methoc Year Amount Year 1 Year 2 28,890 Year 3 Year 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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