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Comparing Three Depreciation Methods
Waylander Coatings Company purchased waterproofing equipment on January 6 for $249,400. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $20,600. The equipment was used for 3,300 hours during Year 1, 2,700 hours in Year 2, 1,600 hours in Year 3, and 1,200 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.

Answer :

The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $20,600.

Equipment is a tangible, long-term asset that will serve your business for years. Computers, trucks, and manufacturing machines are examples of devices. In contrast to intangible assets (patents, trademarks, copyrights, etc.), they are tangible because they have a physical form. contract is required.

The equipment most commonly refers to a set of tools or other items commonly used to accomplish a specific purpose. Different tasks require different types of equipment.

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