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
2014 $135,000
2015 $90,000
2016 $30,000
2017 $