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Va.2014: 565,250 X PR 10-3A Depreciation by three methods; partial years OBJ. 2 Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during 2014, 5,500 hours in 2015, 4,000 hours in 2016, and 1,000 hours in 2017. Instructions Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. C. a. Straight- Line Depreciation Expense b. Units of Production Double-Declining Balance Year 2014 2015 2016 2017 Totals Calculations: Straight-line method: For full year: (Cost - Residual Value) Years Yearly Depreciation For part years: 2014 Depreciation x Portion of Year Depreciation 2017 Depreciation x Portion of Year Depreciation Units-of-production method: (Cost - Residual Value) 1 Total Hours Rate Rate Hours Yearly Depreciation 2014 2015 2016 2017 Yearly Depreciation Double-declining-balance method: Depreciable Balance Rate Portion of Year 2014 2015 2016 Since depreciation cannot cause book value to fall below residual value: Depreciable Balance Residual Value Yearly Depreciation 2017 9 0

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