Question
Comparing three depreciation methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $340,000. The equipment was expected to have a useful life of
Comparing three depreciation methods
Waylander Coatings Company purchased waterproofing equipment on January 6 for $340,000. The equipment was expected to have a useful life of 4 years, or 10,400 operating hours, and a residual value of $28,000. The equipment was used for 4,000 hours during Year 1, 3,200 hours in Year 2, 1,900 hours in Year 3, and 1,300 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-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 4 years by each method.
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