Question
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $200,200. The equipment was expected to have a useful life of
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $200,200. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $16,600. The equipment was used for 2,600 hours during Year 1, 2,100 hours in Year 2, 1,200 hours in Year 3, and 900 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, 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. | |
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Comparing Three Waylander Coatings Company purchased waterproofing equipment on January 6 for $200,200 he equipment was expected to have a useful life of four vears, or 6.80c0 operating hours, and a residual value of $16.600, The equipment as used for 2,600 hours during Year 1, 2.100 hours in Year 2, 1,200 hours in Year 3, and 900 hours in Year 4. Required: double-declining-balance method. Also determine the total deprecistion expense f 1. Determine the ampunt e depreciation expense for the vears ended December 31, Year Year 2, Year 3, and Year. by (a) the straight-line method ) the units- F-output method, and (c) t the four vears by each method. eanswer for each vear to the nearest whole dollan Note: FOR DECUNING BALANCE ONLY, round the multiplier to four decimal places. Then round Denreciation Expenses Units- Straight-Line Method Year Double-Declining-Balance Method -Output Method Year 1 45,900 Year 2 45,900 Year 3 45,900 45.900 Year 4 Toes 183,600 expense for Year 13 eciati Whet me thod ation over the four-vear life of the equipment? Il three depreciation methods Depreciation by Two Methods A Kubota tractor acquired on January 9 at a cost of $27,000 has an estimated useful life of ten years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years l the straight-line method. Second Year First Year 2,700 2,700 b. Determine the depreciation for each of the first two years the double-declining-balance method. Do not round the double-declining balance rate. required, round your final answer to the nearest dollar. First Year Second Year 1.080 X 5,400Step by Step Solution
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