# Depreciation by Three Methods; Partial YearsPerdue Company purchased equipment on April 1 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 Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 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.FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar.

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Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 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 Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 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.

FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then, round the answer for each year to the nearest whole dollar.

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Step 1

Depreciation means decline in the estimation of benefit inside its valuable life because of mileage of asset or the asset ends up outdated. Depreciation doesn't include money exchange rather it demonstrates how much the benefit worth has been utilized over a period.

Step 2

Part a.

Depreciation using straight line method:

Step 3

Part b:

Depreciation using units...

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