Comparing three depreciation methods

Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The equipment was expected to have a useful life of 4 years, or 20,000 operating hours, and a residual value of $35,000. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 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. 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-Activity Method	Double-Declining- Balance Method
Year 1	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Year 2	fill in the blank 4	fill in the blank 5	fill in the blank 6
Year 3	fill in the blank 7	fill in the blank 8	fill in the blank 9
Year 4	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15

2. What method yields the highest depreciation expense for Year 1?

3. What method yields the most depreciation over the 4-year life of the equipment?