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Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2011, for 3853, 600. The equipment was expected to have a useful
Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2011, for 3853, 600. The equipment was expected to have a useful life of four years, or 8, 800 operating hours, and a residual value of $70, 400. The equipment was used for 3, 300 hours during 2011, 2, 700 hours in 2012, 1, 600 hours in 2013, and 1, 200 hours in 2014. Determine the amount of depreciation expense of the years ended December 31, 2011, 2012, 2013, and 2014, by (a) the straight-line method, (b) the units-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. What method yields the highest depreciation expense for 2013? What method yields the most depreciation over the four-year life of the equipment
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