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.
Instructions:
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.
Kindly refer to the format given above. Need the cells to be filled up
Perdue Company Purchased Equipment On April 1 For 270 000 The Equipment Was Expected To Have A Useful Life Of Three Ye 1 (102.52 KiB) Viewed 42 times
Perdue Company Purchased Equipment On April 1 For 270 000 The Equipment Was Expected To Have A Useful Life Of Three Ye 2 (453.58 KiB) Viewed 42 times
A B D E K L M N P Q R 15 16 17 18 19 A. Straight Line F G H Depreciation Expense B. C. Units of Double-Declining- Activity Balance Year 1 20 21 2 3 4 24 Totals Calculations: 25 26 27 28 Straight-line method: For full year 30 (Cost Residual Value) 1 Years Yearly Depreciation 8888% 预 33 For part years: Year 1 Depreciation x Portion of Year Depreciation 35 35 37 Year 4 Depreciation x Portion of Year Depreciation 38 39 Units of activity method:
A B с D G H J K M N 0 Р. 38 R S 39 40 41 42 Units-of-activity method: (Cost Residual Value) 1 Total Hours Rate 43 44 Rate Hours Yearly Depreciation 45 46 47 Year 1 Year 2 Year 3 Year 4 B的如中必B叫作的归82558345 $5855 49 50 51 Yearly Double-declining-balance method: Depreciable Balance x Year 1 Year 2 Year 3 Rate X Portion of Year Depreciation 56 Since depreciation cannot cause book value to fall below residual value: 57 Depreciable Balance Residual Value Yearly Depreciation 59 Year 4 60 61
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