please fix these 3 errors. thanks Print Rem Comparing Three Depreciation Methods

Question

please fix these 3 errors.
thanks

Print Rem Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $634,800. The equipment was expacted to of four years, or 10,400 operating hours, and a residual value of $52,400. The equipment was used for 4,000 hours during Ye in Year 2, 1,900 hours in Year 3, and 1,300 hours in Year 4, ar 1, 3,200 hours 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-output method, and (c) the double-declining-balance mathod. Also determine the total depreciation expense for the years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Than round the answer for each year to the nearest whale doliar Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method 145,600 145,600 145,600 145,600 582,400 224,000 179,200 s 106,400 72,800 582,400 Year 1 s 317,400 $ 132,500 X year 3 Year 4 Total 2. What method yelds the highest depreciation expense for Year 1? 66,250 x 66,250 x s 582,400 Double-declining-balance method v 0

Explanation / Answer

Double Declining balance method Depreciation factor is equal to 2 since it is double declining Dep rate using SLM =100%/useful life = 100%/4 = 25% Depreciation Rate = Depreciation Factor x Straight-Line Depreciation Percent =2*25% = 50% Depreciation for a yr 1 = Depreciation Rate x Book Value at Beginning of the Period =50%*634800 317400 $ Depreciation for a yr 2 = Depreciation Rate x Book Value at Beginning of the Period =50%*(634800-317400) 158700 $ Depreciation for a yr 3 = Depreciation Rate x Book Value at Beginning of the Period =50%*(634800-317400-158700) 79350 $ 555450 Depreciation for a yr 4 = Depreciation Rate x Book Value at Beginning of the Period 595125 =50%*(634800-317400-158700-79350) 39675 =39675-12725(SPECIAL ADJUSTMENT FO FINAL YEAR**) **That final year adjustment was calculated because the carrying value at the end of the FOUR -year period would have been $52400

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.