Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and aresidual valueof $35,000. The equipment was used for 7,200 hours during 2015, 6,400 hours in 2016, 4,400 hours in 2017, and 2,000 hours in 2018.

Required:

1.Determine the amount of depreciation expense for the years ended December 31, 2015, 2016, 2017, and 2018, by (a) thestraight-line method, (b) theunits-of-output method, and (c) thedouble-declining-balance method. Also determine the total depreciation expense for the four years by each method. (Note: For DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.)

2.What method yields the highest depreciation expense for 2015?

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

Determine the amount of depreciation expense for the years ended December 31, 2015, 2016, 2017, and 2018, by (a) thestraight-line method, (b) theunits-of-output method, and (c) thedouble-declining-balance method. Also determine the total depreciation expense for the four years by each method.

Depreciation Expense

1 Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method

2 2015

3 2016

4 2017

5 2018

6 Total