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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Amount Year 1 Year 2 16,100 Year 3 16,100 Year 4 $ b. Units-of-activity method Year Year 1 Year 2 Year 3 Amount Year 4 c. Double-declining-balance 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 $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Amount Year 1 Year 2 16,100 Year 3 16,100 Year 4 $ b. Units-of-activity method Year Year 1 Year 2 Year 3 Amount Year 4 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Amount Year 1 Year 2 16,100 Year 3 16,100 Year 4 $ b. Units-of-activity method Year Year 1 Year 2 Year 3 Amount Year 4 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount
Transcribed Image Text:Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,040. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $1,740. The equipment was used for 1,200 hours during Year 1, 2,400 hours in Year 2, 2,100 hours in Year 3, and 1,200 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 Amount Year 1 Year 2 16,100 Year 3 16,100 Year 4 $ b. Units-of-activity method Year Year 1 Year 2 Year 3 Amount Year 4 c. Double-declining-balance method Year Year 1 Year 2 Year 3 Year 4 Amount
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