Waylander Coatings Company purchased waterproofing equipment on January 6 for $844,000. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $69,600. The equipment was used for 3,300 hours during Year 1, 2,700 hours in Year 2, 1,600 hours in Year 3, and 1,200 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: Round the answer for each year to the nearest whole dollar.

Waylander Coatings Company purchased waterproofing equipment on January 6 for $844,000. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $69,600. The equipment was used for 3,300 hours during Year 1, 2,700 hours in Year 2, 1,600 hours in Year 3, and 1,200 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: Round the answer for each year to the nearest whole dollar.

Name: Waylander Coatings Company purchased waterproofing equipment on Janua
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Description: Waylander Coatings Company purchased waterproofing equipment on January 6 for $844,000. The equipment was expected to have a useful life of four years, or 8,800operating hours, and a residual value of $69,600. The equipment was used for 3,300 hours

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 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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