Perdue Company purchased equipment on April 1 for \$100,170. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of \$2,970. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 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) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a.  Straight-line method Year Amount Year 1 \$ 24300 Year 2 \$ 32400 Year 3 \$ 32400 Year 4 \$ 8100 b.  Units-of-activity method Year Amount Year 1 \$ 18000 Year 2 \$ 33600 Year 3 \$ 28800 Year 4 \$ 16800 c.  Double-declining-balance method Year Amount Year 1 \$ ??? Year 2 \$ ??? Year 3 \$ ??? Year 4 \$ ???

Question

Perdue Company purchased equipment on April 1 for \$100,170. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of \$2,970. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 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) units-of-activity method, and (c) the double-declining-balance method.

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

a.  Straight-line method

 Year Amount Year 1 \$ 24300 Year 2 \$ 32400 Year 3 \$ 32400 Year 4 \$ 8100

b.  Units-of-activity method

 Year Amount Year 1 \$ 18000 Year 2 \$ 33600 Year 3 \$ 28800 Year 4 \$ 16800

c.  Double-declining-balance method

 Year Amount Year 1 \$ ??? Year 2 \$ ??? Year 3 \$ ??? Year 4 \$ ???