Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $391,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 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-output 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-Output Method Double-Declining-Balance Method Year 1 Year 2 $ Year 3 $4 Year 4 2$ %$4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the four-year life of the equipment?

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Chapter18: Accounting For Long-term Assets
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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 $391,000. The equipment was expected to have a useful life of four years, or 9,200
operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 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-output 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-Output Method
Double-Declining-Balance Method
Year 1
Year 2
Year 3
$4
Year 4
$4
Total
2. What method yields the highest depreciation expense for Year 1?
3. What method yields the most depreciation over the four-year life of the equipment?
Previous
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Transcribed Image Text:Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $391,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 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-output 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-Output Method Double-Declining-Balance Method Year 1 Year 2 Year 3 $4 Year 4 $4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the four-year life of the equipment? Previous All work saved. Submit Test for Grading 國山T。 Aa 10
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