PR 10-28 Comparing three depreciation methods oBJ. 2 1: straight- ation, 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 op erating 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 cel Instructions 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 depre ciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts Straight- Line Method Depreciation Expense Units-of Activity Double-Declining Balance Method Year Method Chapter 10 Long-Term Assets: Fixed and intangible 533 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 PR 10-38 Depreciation by three methods; partial years 0B1.2