Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $37,530. Theequipment was expected to have a useful life of three years, or4,860 operating hours, and a The estimated value of a fixed assetat the end of its useful life.residual value of $1,080. Theequipment was used for 900 hours during Year 1, 1,700 hours in Year2, 1,500 hours in Year 3, and 760 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years endedDecember 31, Year 1, Year 2, Year 3, and Year 4, by (a) the Amethod of depreciation that provides for equal periodicdepreciation expense over the estimated life of a fixedasset.straight-line method, (b) A method of depreciation thatprovides for depreciation expense based on the expected productivecapacity of a fixed asset. units-of-output method, and (c) the Amethod of depreciation that provides periodic depreciation expensebased on the declining book value of a fixed asset over itsestimated life.double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to fourdecimal places. Then round the answer for each year to the nearestwhole dollar.
a. Straight-line method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
b. Units-of-output method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
c. Double-declining-balance method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
