Determine the amount of depreciation expense for the years

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Perdue Company purchased equipment on April 1 for $75,060. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $2,160. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 hours in Year 4.

Question 1: 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

YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $

b. Units-of-activity method

YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $

c. Double-declining-balance method

YearAmount Year 1 $ Year 2 $ Year 3 $ Year 4 $

Reference no: EM132570348

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