Question
Waylander Coatings Company purchased waterproofing equipment on January 6 for $476,200. The equipment was expected to have a useful life of four years, or 10,400
Waylander Coatings Company purchased waterproofing equipment on January 6 for $476,200. The equipment was expected to have a useful life of four years, or 10,400 operating hours, and a residual value of $39,400. 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.
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 four years by each method.
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