Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2011, for $563,400. The equipment was expected to have a useful life of four years, or 7,600 operating hours, and a residual value of $46,600. The equipment was used for 2,900 hours during 2011, 2,400 hours in 2012, 1,400 hours in 2013, and 900 hours in 2014.