Comparing Three Depreciation Methods

Newbirth Coatings Company purchased waterproofing equipment on January 2, 2011, for $488,400. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $40,400. The equipment was used for 3,000 hours during 2011, 2,500 hours in 2012, 1,400 hours in 2013, and 1,100 hours in 2014.

Required:

1. Determine the amount of depreciation expense for the years ended December 31, 2011, 2012, 2013, and 2014, 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

2011 $ $ $

2012 $ $ $

2013 $ $ $

2014 $ $ $

Total $ $ $

Units-of-Output Method

2011 $ $ $

2012 $ $ $

2013 $ $ $

2014 $ $ $

Total $ $ $

Double-Declining-Balance Method

2011 $ $ $

2012 $ $ $

2013 $ $ $

2014 $ $ $

Total $ $ $