Compare Three Depreciation Methods Plum Coatings Company purchased waterproofing equipment on January 2, 2011, for $450,000. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $50,000. The equipment was used for 3,000 hours during 2011, 4,000 hours in 2012, 2,500 hours in 2013, and 500 hours in 2014. Instructions: 1. Determine the amount of depreciation expense for the years ended December 31, 2011, 2012, 2013, and 2014, by the Straight-Line Method, the Units-of-Production Method, and the Double-Declining-Balance Method. Also determine the total depreciation expense for the four years by each method. Depreciation Expense Year Straight-Line Method Units-of-Production Method Double-Declining-Balance Method 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for 2011? SelectStraight-line methodUnits-of-production methodDouble-declining-balance methodAll three depreciation methodsItem 16 3. What method yields the most depreciation over the four-year life of the equipment? SelectStraight-line methodUnits-of-production methodDouble-declining-balance methodAll three depreciation methodsItem 17 Instructions: Hide Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank or enter "0". Transactions for Fixed Assets, Including Sale The following transactions, adjusting entries, and closing entries were completed by McHenry Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Instructions: jan. 4. purchased a used delivery truck for 54000 paying cash feb. 24. paid garage $275 for changing the oil,replacing the oil filter,and tuning the engine on the delivery truck. dec 31 recorded deprecaition on the truck for fiscal year.the estimated useful life of the truck is eight years,with a residual value of 12000 for the truck. jan 3 purchases a new truck for 60,000 paying cash. mar 7 paid garage 300 to tune the engine and make other minor repairs on the used truck. apr.30 sold the used truck for 35000.(record depreciation to date in 2011 for the truck). dec 31. record depriation for the new truck.it has an estimated residual value of $16000 and an estimated life of 10 years. july1. purchased a new truck for 64000 paying cash. oct 7. sold the truck purchased january 3,2011 for 45000.(record deprcaition for the year.) dec 31. recored deprecaition on the remaining truck.it has an estimated residual value of $17500 and an estimated useful life of 10 years. Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank or enter "0