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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,370. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $2,070. The equipment was used for 1,200o 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 16,100 x Year 2 %$4 Year 3 Year 4 %24 b. Units-of-activity method Year Amount Year 1 Year 2 %24 Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,370. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $2,070. The equipment was used for 1,200o 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 16,100 x Year 2 %$4 Year 3 Year 4 %24 b. Units-of-activity method Year Amount Year 1 Year 2 %24 Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...
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Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,370. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $2,070. 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 $ 16,100 x Year 2 Year 3 24 Year 4 b. Units-of-activity method Year Amount Year 1 $4 Year 2 Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3 24 Year 4
Transcribed Image Text:Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $50,370. The equipment was expected to have a useful life of three years, or 6,900 operating hours, and a residual value of $2,070. 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 $ 16,100 x Year 2 Year 3 24 Year 4 b. Units-of-activity method Year Amount Year 1 $4 Year 2 Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 Year 3 24 Year 4
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