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Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $274,600. The equipment was expected to have a useful lif of four years, or 7,200 operating hours, and a residual value of $22,600. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 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 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 $4 Year 2 $ $4 $ Year 3 $4 $4 $ Year 4 $4 $4 Total 2$ 2. What method yields the highest depreciation expense for Year 1?

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $274,600. The equipment was expected to have a useful lif of four years, or 7,200 operating hours, and a residual value of $22,600. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 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 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 $4 Year 2 $ $4 $ Year 3 $4 $4 $ Year 4 $4 $4 Total 2$ 2. What method yields the highest depreciation expense for Year 1?

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 10SPB: IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans...
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Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $274,600. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $22,600. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 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 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 $4 Year 2 Year 3 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
Transcribed Image Text:Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $274,600. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $22,600. The equipment was used for 2,700 hours during Year 1, 2,200 hours in Year 2, 1,300 hours in Year 3, and 1,000 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 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 $4 Year 2 Year 3 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
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