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Perdue company purchased equipment on april

04/05/2021 Client: muhammad11 Deadline: 2 Day

epreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1, 2014, 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 2014, 5,500 hours in 2015, 4,000 hours in 2016, and 1,000 hours in 2017.

Required:

Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.

a. Straight-line method

Year Amount

2014 $65,250

2015 $87,000

2016 $87,000

2017 $21,750

b. Units-of-output method

Year Amount

2014 $108,750

2015 $79,750

2016 $58,000

2017 $14,500

c. Double-declining-balance Method

Year Amount

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