Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $532,000....

Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $532,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $44,000. The equipment was used for 3,000 hours during 2013, 2,500 hours in 2014, 1,400 hours in 2015, and 1,100 hours in 2016. Required: 1. Determine the amount of depreciation expense for the years ended December 31, 2013, 2014, 2015, and 2016, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method 2013 $ $ $ 2014 $ $ $ 2015 $ $ $ 2016 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for 2015? 3. What method yields the most depreciation over the four-year life of the equipment?

Expert Solution

please use comment box for further clarification if any

ekkarill92 answered 3 weeks ago

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $540,600. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $540,600. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $44,600. The equipment was used for 3,000 hours during Year 1, 2,500 hours in Year 2, 1,400 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,400. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,400. The equipment was expected to have a useful life of four years, or 8,400 operating hours, and a residual value of $26,400. The equipment was used for 3,200 hours during Year 1, 2,600 hours in Year 2, 1,500 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $487,400. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $487,400. The equipment was expected to have a useful life of four years, or 10,400 operating hours, and a residual value of $40,200. The equipment was used for 4,000 hours during Year 1, 3,200 hours in Year 2, 1,900 hours in Year 3, and 1,300 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $314,800. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $314,800. The equipment was expected to have a useful life of four years, or 7,600 operating hours, and a residual value of $26,000. The equipment was used for 2,900 hours during Year 1, 2,400 hours in Year 2, 1,400 hours in Year 3, and 900 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $637,400. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $637,400. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $52,600. The equipment was used for 2,600 hours during Year 1, 2,100 hours in Year 2, 1,200 hours in Year 3, and 900 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $272,000. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $272,000. The equipment was expected to have a useful life of four years, or 6,400 operating hours, and a residual value of $22,400. The equipment was used for 2,400 hours during Year 1, 2,000 hours in Year 2, 1,200 hours in Year 3, and 800 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $321,800. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $321,800. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $26,600. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $682,800. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $682,800. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $56,400. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $555,000. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $555,000. The equipment was expected to have a useful life of four years, or 7,600 operating hours, and a residual value of $45,800. The equipment was used for 2,900 hours during Year 1, 2,400 hours in Year 2, 1,400 hours in Year 3, and 900 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $359,800. The...

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $359,800. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $29,800. The equipment was used for 3,800 hours during Year 1, 3,100 hours in Year 2, 1,800 hours in Year 3, and 1,300 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year...

Question