Depreciation by Three Methods; Partial Years Razar Sharp Companypurchased equipment on July 1, 2014, for $70,200. The equipment wasexpected to have a useful life of three years, or 6,480 operatinghours, and a residual value of $2,160. The equipment was used for1,200 hours during 2014, 2,300 hours in 2015, 1,900 hours in 2016,and 1,080 hours in 2017.
Required: Determine the amount of depreciation expense for theyears ended December 31, 2014, 2015, 2016, and 2017, by (a) thestraight-line method, (b) units-of-output method, and (c) thedouble-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 2014 $ 2015 $ 2016 $ 2017$
b. Units-of-output method Year Amount 2014 $ 2015 $ 2016 $ 2017$
c. Double-declining-balance method Year Amount 2014 $ 2015 $2016 $ 2017 $
