Compare TwoDepreciationMethods

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 aresidual valueof $9,000.

Instructions:

Determine the amount of depreciation expense for the years ended December 31, 20Y4, 20Y5, 20Y6, and 20Y7, by (a) thestraight-line methodand (b) thedouble-declining-balance method. Also determine the total depreciation expense for the four years by each method.

Depreciation Expense (Straight-Line Method) (Double-Declining-Balance Method)

Year

20Y4 $____ $_____

20Y5 ____ ____

20Y6 ____ _____

20Y7 ____ _____

Total $_____ $ _____