**Comparing Three Depreciation Methods**Waylander Coatings Company purchased waterproofing equipment on January 6 for $722,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $59,600. The equipment was used for 3,500 hours during Year 1, 2,900 hours in Year 2, 1,700 hours in Year 3, and 1,100 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 (c) The double-declining-balance methodAlso, determine the total depreciation expense for the four years by each method.*Note: Round the answer for each year to the nearest whole dollar.***Depreciation Expense Table:**| Year | Straight-Line Method | Units-of-Activity Method | Double-Declining-Balance Method ||--------|----------------------|--------------------------|---------------------------------|| Year 1 | | | || Year 2 | | | || Year 3 | | | || Year 4 | | | || Total | | | |2. What method yields the highest depreciation expense for Year 1?- Double-declining-balance method ✔️3. What method yields the most depreciation over the four-year life of the equipment?- All three depreciation methods ✔️

Name: **Comparing Three Depreciation Methods**Waylander Coatings Company pu
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: **Comparing Three Depreciation Methods**Waylander Coatings Company purchased waterproofing equipment on January 6 for $722,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $59,600

Depreciation is a non-cash expense. It is shown in the income statement of the entity. It is charged…

Business

Accounting

Waylander Coatings Company purchased waterproofing equipment on January 6 for $722.000. The equipment was expected to have a useful life of four years, or 9.200 operating hours, and a residual value of $59.600. The equipment was used for 3.500 hours during Year 1, 2.900 hours in Year 2, 1.700 hours in Year 3, and .100 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. Year Year 1 Year 2 Year 3 Straight-Line Method s $ $ Depreciation Expense Units-of-Activity Method "Year 4 Total 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method ✔ Double-Declining-Balance Method 3. What method yields the most depreciation over the four-year life of the equipment? All three depreciation methods S S s

Waylander Coatings Company purchased waterproofing equipment on January 6 for $722.000. The equipment was expected to have a useful life of four years, or 9.200 operating hours, and a residual value of $59.600. The equipment was used for 3.500 hours during Year 1, 2.900 hours in Year 2, 1.700 hours in Year 3, and .100 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. Year Year 1 Year 2 Year 3 Straight-Line Method s $ $ Depreciation Expense Units-of-Activity Method "Year 4 Total 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method ✔ Double-Declining-Balance Method 3. What method yields the most depreciation over the four-year life of the equipment? All three depreciation methods S S s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Perdue Company purchased equipment on April 1 for $100,170. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of $2,970. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 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) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $ 24300 Year 2 $ 32400 Year 3 $ 32400 Year 4 $ 8100 b. Units-of-activity method Year Amount Year 1 $ 18000 Year 2 $ 33600 Year 3 $ 28800 Year 4 $ 16800 c. Double-declining-balance method Year Amount Year 1 $ ??? Year 2 $ ??? Year 3…
Dexter Industries purchased packaging equipment on January 8 for $215,400. The equipment was expected to have a useful life of three years, or 7,600 operating hours, and a residual value of $17,800. The equipment was used for 2,900 hours during Year 1, 2,400 hours in Year 2, and 1,400 hours in Year 3. 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a) the straight-line method,
Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $391,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 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-output method, and (c) the double-declining-balance method. 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 dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method Year 1 Year 2 Year 3 $4 Year 4 $4 Total 2. What method…
Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $1,350. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 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) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 12,285 V Year 2 Year 3 Year 4 b. Units-of-activity method Year Amount Year 1 9,100 Year 2 Year 3 $ Year 4 c. Double-declining-balance method Year Amount
Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of 3 years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 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-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, do not round the multiplier. Then, round the answer for each year to the nearest whole dollar. a. Straight-line method Amount 87,000 X 87,000 87,000 87,000 X Year Year 1 Year 2 Year 3 Year 4 b. Units-of-activity method Year Year 1 Year 2 Year 3 Year 4 Year Year 1 Year 2 c. Double-declining-balance Method Year 3. Amount Year 4 108,750 79,750 58,000 14,500 Amount 180,000 X 60,000 X
Dexter Industries purchased packaging equipment on January 8 for $72,000. The equip-ment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3.Instructions 1. Determine the amount of depreciation expense for the three years ending December 31 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 three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:Depreciation ExpenseStraight-LineYear MethodUnits-of-Activity MethodDouble-Declining-Balance Method2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment?
A plant asset was purchased on January 1 for $59000 with an estimated salvage value of $9000 at the end of its useful life. The current year's Depreciation Expense is $5000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $30000. The remaining useful life of the plant asset is O 10.0 years. O 11.8 years. ○ 4.0 years. O 6.0 years.
Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000 and a useful life of 10 years. After two years of using the double-declining balance method for depreciation, the company decided to switch to the straight-line method. The company also revised the equipment's remaining useful life to 6 years. What is the depreciation expense for the equipment for the third year? Answer a. $12,000 b. $9,000 c. $11,500 d. $13,500
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $501,400. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $41,400. The equipment was used for 3,800 hours during Year 1, 3,100 hours in Year 2, 1,800 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, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. 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 dollar. 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?
s
A plant asset was purchased on January 1 for $120000 with an estimated salvage value of $10000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $60000. The remaining useful life of the plant asset is 5 years. O. 11 years. O 12 years. O 7 years.