Perdue Company purchased equipment on April 1 for $59,940. The equipment was expected to have a useful life of three years, or 4,860 operating hours, and a residual value of $1,620. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 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.
Hello, sorry to bother you at this time. I am having trouble with my accounting homework. I am currently taking financial accounting. In doing the homework, I understand how to find the straight-line method and the units-of-activity method, however I am having issues trying to figure out the double-declining-balance method. I understand the step required when applying the double-declining-balance method, however not for this problem. When doing the straight line method, the answers come out to different values; meaning that they are changing at different percentages. How would I apply the double-declining-balance method?