Comparing Three Depreciation Methods

Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $311,400. The equipment was expected to have a useful life of four years, or 8,400 operating hours, and a residual value of $25,800. The equipment was used for 3,200 hours during 2013, 2,600 hours in 2014, 1,500 hours in 2015, and 1,100 hours in 2016.

Required:

1.Determine the amount of depreciation expense for the years ended December 31, 2013, 2014, 2015, and 2016, 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

2013 $ $ $

2014 $ $ $

2015 $ $ $

2016 $ $ $

Total $ $ $