Seal Coatings Company purchased waterproofing equipment on January 2, 2007, for \(\$ 475,000\). The equipment was expected to have a useful life of four years, or 21,500 operating hours, and a residual value of \(\$ 45,000\). The equipment was used for 7,600 hours during 2007, 6,800 hours in 2008, 5,100 hours in 2009, and 2,000 hours in 2010.
{Instructions}
Determine the amount of depreciation expense for the years ended December 31, 2007, 2008, 2009, and 2010, by

(a) the straight-line method,

(b) the units-of-production method, and

(c) 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:objs. 4,5

Transcribed Image Text:

Depreciation Expense Straight- Units-of- Line Production Year Method Method Double-Declining- Balance Method