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 hoursduring Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4.Instructions1. Determine the amount of depreciation expense for the years ended December 31, Year1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activitymethod, and (c) the double-declining-balance method. Also determine the total depre-ciation expense for the four years by each method. The following columnar headingsare suggested for recording the depreciation expense amounts:Depreciation ExpenseUnits-of-ActivityMethodDouble-Declining-BalanceMethodStraight-LineMethodYear 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?

Determine the amount of depreciation for three years ending.

Answered: Waylander Coatings Company purchased…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Waylander Coatings Company purchased waterproofing equipment on January 6 for $661,800. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $54,600. 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-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. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 Year 2 $4 $ Year 3 Year 4 $4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the four-year…
On January 1, Alamo Cranes purchased a crane for $140,000. Alamo expects the crane to remain useful for six years (1,000,000 lifts) and to have a residual value of $2,000. The company expects the crane to be used for 80,000 lifts the first year. Read the requirements LOADING... . a. Compute the first-year depreciation expense on the crane using the straight-line method. Begin by selecting the formula to calculate the company's first-year depreciation on the crane using the straight-line method. Then enter the amounts and calculate the depreciation for the first year. ( Cost - Residual value ) ÷ Useful life = Straight-line depreciation ( $140,000 - $2,000 ) ÷ 6 = $23,000 b. Compute the first-year depreciation expense on the crane using the units-of-production method. Before calculating the first-year depreciation on the crane using the units-of-production method, calculate the depreciation…
Waylander Coatings Company purchased waterproofing equipment on January 6 for $591,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $48,800. 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, 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. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 135,700 V 59 x Year 2 Year 3 24 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the…
Fields Company purchased equipment on January 1 for $180,000. This system has a useful life of 8 years and a salvage value of $20,000. The company estimates that the equipment will produce 40,000 units over its 8-year useful life. Actual units produced are: Year 1 – 4,000 units; Year 2 – 6,000 units; Year 3 – 8,000 units; Year 4 – 5,000 units; Year 5 – 4,000 units; Year 6 – 5,000 units; Year 7 – 7,000 units; Year 8 – 3,000 units. What would be the depreciation expense for the final year of its useful life using the units-of-production method? Group of answer choices $24,000. $33,750. $12,000. $4,000. $164,000.
On January 1, Alamo Cranes purchased a crane for $140,000. Alamo expects the crane to remain useful for six years (1,000,000 lifts) and to have a residual value of $2,000. The company expects the crane to be used for 80,000 lifts the first year. Read the requirements LOADING... . a. Compute the first-year depreciation expense on the crane using the straight-line method. Begin by selecting the formula to calculate the company's first-year depreciation on the crane using the straight-line method. Then enter the amounts and calculate the depreciation for the first year. ( Cost - Residual value ) ÷ Useful life = Straight-line depreciation ( $140,000 - $2,000 ) ÷ 6 = $23,000 b. Compute the first-year depreciation expense on the crane using the units-of-production method. Before calculating the first-year depreciation on the crane using the units-of-production method, calculate the depreciation…
A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an estimated sv of $10,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m3 of crushed material) will be contracted over the next five years. EOY 12 4 m3 16,000 24,000 36,000 16,000 8,000 Using the units of production depreciation method, what is the BV at the end of year two? Select one: O a $38,650 O b. $45,165 OC $42,500 Od $40,000
Can you please look at this problem and tell me how i am getting the question with the x wrong and give me the solution Perdue Company purchased equipment on April 1 for $77,760. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,160. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 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 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method…
A concrete and rock crusher for demolition work has been purchased for $65,000, and it has an estimated SV of $9,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m of crushed material) will be contracted over the next five years. Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year two? EOY 1 2 3 16,000 26,000 34,000 14,000 10,000
A concrete and rock crusher for demolition work has been purchased for $64,000, and it has an estimated SV of $12,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m³ of crushed material) will be contracted over the next five years. Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year four? ΕΟΥ m³ 1 15,000 2 23,000 CITTS 3 34,000 The depreciation allowance in year three is $. (Round to the nearest dollar.) The BV at the end of year four is $. (Round to the nearest dollar.) 15,000 13,000 tic ras
Scott Company purchased a new machine on January 1, Year 1, at a cost of $224,000. The machine is expected to have an eight-year life and a $20,000 salvage value. The machine is expected to produce 800,000 finished products during its eight-year life. Production during Year 1 was 70,600 units and during Year 2 was 117,000 units. TB Problem Qu. 6-135 (Algo) Part 1 Required: 1. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the straight-line method. Deprecation under straight-line method Year 1 Year 2
Scott Company purchased a new machine on January 1, Year 1, at a cost of $224,000. The machine is expected to have an eight-year life and a $20,000 salvage value. The machine is expected to produce 800,000 finished products during its eight-year life. Production during Year 1 was 70,600 units and during Year 2 was 117,000 units. TB Problem Qu. 6-135 (Algo) Part 1 Required: 1. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the straight-line method. Deprecation under straight-line method Year 1 2. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the units-of-production method. Depreciation under units-of-production method Year 2 Depreciation under double-declining-balance method Year 1 3. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the double-declining- balance method. Year 2 Year 1 Year 2

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