om$/$ilrn$/$takeAssignment$/$takeAssignmentMain$.$do$?$invoker$=$&takeAssignmentSessionLocator$=$assignment$-$take&inprogress$=$false

eBook

Show Me How

Print ltem

Comparing Three Depreciation Methods

Waylander Coatings Company purchased waterproofing equipment on January $6$ for $$320,000.$ The equipment was expected to have a useful life of four years, or $20,000$ operating hours, and a residual value of $$35,000.$ The equipment was used for $7,200$ hours during Year $1,6,400$ hours in Year $2,4,400$ hours in Year $3,$ and $2,000$ 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$-$ofactivity 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 doflar.

Depreciation Expense

$\backslash$table$[[$Year$,$Straight$-$Line Method,Units$-$of$-$Activity Method$],[$Year $1,$$$,],[$Year $2,,],[$Year $3,,],[$Year $4,$$$,],[$Total$,$$$,]]$

Double$-$Declining$-$Balance Method

$2.$ 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?

$2$ more Check My Work uses remaining

Previous

All work saved.

Submit Assignment for Grading