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n Cengage Leaming Google Chrome gnment-takekinprogress fabe Show Me How Cal lator Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $837,200. The equipment was expected to have a useful life of four years, or 9,600 operating hours, and a residual value of $69,200. 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: 1. Determine the amount of depreciation expense for the years ended December 31, year 1, wear 2, wear 3, and-, 4, by ta) the straight k·mated (b) the units-of output method, and (e) the double-dedining-balance tmethod. 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 doll a Depreciation Expense Straight-Line Hethod Units-of-Outpet Hethod Double-Declining Balance Method aar 2 2. what method vields the highest depreciation expese for year f 3. What methed yieids the most depreciation over the four ea 5 6 8 9 0 ???????1 OutExplanation / Answer
1. Depreciation Expense
2. The Double Declining Balance method yields the highest depreciation for Year 1.
3. All the methods yield the same total depreciation over the life of the asset.
Year Straight-line Method Units of Output Method Double Declining Balance Method $ $ $ 1 192,000 288,000 418,600 2 192,000 240,000 209,300 3 192,000 136,000 104,650 4 192,000 104,000 35,450 Total 768,000 768,000 768,000Related Questions
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