PR 9-2B Comparing three depreciation methods Obj. 2 1: straight- Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. epreciation, The equipment was expected to have a useful life of four years, or 20,000 operating hours $71,250 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 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 depreciation 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 Method Double-Declining Balance Method Year 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