Perdue Company purchased equipment on April 1 for $23,490. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $810. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 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.

Perdue Company purchased equipment on April 1 for $23,490. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $810. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 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.

Name: b. Units-of-activity methodYearAmountYear 12$4,200Year 2$7,800Year 36
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Description: b. Units-of-activity methodYearAmountYear 12$4,200Year 2$7,800Year 36,600Year 44,080c. Double-declining-balance methodYearAmountYear 1Year 27,830Year 3Year 4235 X Depreciation by Three Methods; Partial YearsPerdue Company purchased equipment on Apri

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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