In: Accounting
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 2, Year 3, and Year
4, 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 | |||
Year 1 | $ | $ | $ | |||
Year 2 | $ | $ | $ | |||
Year 3 | $ | $ | $ | |||
Year 4 | $ | $ | $ | |||
Total | $ | $ | $ |