Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have a useful life of four years and a residual value of $9,000.

Instruction

Determine the amount of depreciation expense for the years ended December 31, 20Y4, 20Y5, 20Y6, and 20Y7, by

(a) The straight-line method and

(b) The double-declining-balance method.

Also determine the total depreciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:

Transcribed Image Text:

Depreciation Expense Straight-Line Double-Declining-Balance Method Year