Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $43,590. The equipment was expected to have a useful life of three
years, or 6,000 operating hours, and a residual value of $1,590. The equipment was used for 1,100 hours during Year 1,
2,100 hours in Year 2, 1,800 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. Note: Round all
final values for each depreciation method and each year to the nearest whole dollar.
a. Straight-line method
Year
Year 1
Year 2
Year 3
Year 4
$
$
Year
$
b. Units-of-activity method
Amount
Amount
