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Purdue Company purchased equipment on April 1, 2012 for $270,000 cash. The equipment wasexpected to have a useful life of 3 years or 18,000 operating hours and a residual value of $9,000.The equipment was used for 7,500 hours during 2012, 5,500 in 2013, 4,000 hours in 2014 and1,000 hours in 2015.i) Prepare the journal entries to record the purchase of the equipment on April 1, 2012ii) Determine the depreciation expense for the years ended December 31, 2012, 2013, 2014 and 2015 by (a) the straight-line method, (b) the unit-of-production method & (c) thedouble-declining method.iii) Prepare the balance sheet extract for 2012, 2013, and 2014
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