Question

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $502,200. The equipment was expected to have a useful life of four years, or 9,600 operating hours, and a residual value of $41,400. The equipment was used for 3,600 hours during Year 1, 3,000 hours in Year 2, 1,700 hours in Year 3, and 1,300 hours in Year 4.

Required:
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.

Answer 1

Please find the complete question in the attached file.

Step-by-step explanation:

`Year\ \ \ \ \ \ \ \text{Straight - line method} \ \ \ \ \ \ \text{Units-of-Activitymethod}\ \ \ \ \ \ \text{Double-declining-balance method}\\\\`
`1\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$316,800\ \ \ \ \ \ \ \ \$460,400\\\\2\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$264,000\ \ \ \ \ \ \ \ \$230,200\\\\3\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$149,600\ \ \ \ \ \ \ \ \$115,100\\\\4\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$114,400\ \ \ \ \ \ \ \ \$39,100\\\\`

`Total\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\\\\`