Waylander Coatings Company purchased waterproofing equipment on January 6 for $192,800. The equipment was expected to have a useful life of 4 years, or 6,800 operating hours, and a residual value of $16,000. 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-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 4 years by each method. 2. What method yields the highest depreciation expense for Year 1?

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