1. Comparing Three The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.Depreciation Methods

   Waylander Coatings Company purchased waterproofing equipment on January 6 for $488,400. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a The estimated value of a fixed asset at the end of its useful life.residual value of $40,400. The equipment was used for 3,000 hours during Year 1, 2,500 hours in Year 2, 1,400 hours in Year 3, and 1,100 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 A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.straight-line method, (b) the A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset.units-of-activity method, and (c) the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method. Also determine the total depreciation expense for the four 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		$			$			$
   Year 2		$			$			$
   Year 3		$			$			$
   Year 4		$			$			$
   Total		$			$			$

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

   • Straight-line method
   • Units-of-output method
   • Double-declining-balance method
   • All three depreciation methods

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

   • Straight-line method
   • Units-of-output method
   • Double-declining-balance method
   • All three depreciation methods