Depreciation Methods On January 2, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $240,000 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $24,400. Required a. Calculate each year’s depreciation expense for the period under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance. 3. Units-of-production. (Assume annual production in platings of 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)   1. Straight-Line Year Depreciation Expense Year 1 $Answer Year 2 Answer Year 3 Answer Year 4 Answer Year 5 Answer Year 6 Answer   2. Double-declining balance Year Depreciation Expense Year 1 $Answer Year 2 Answer Year 3 Answer Year 4 Answer Year 5 Answer Year 6 Answer   3. Units of Production Year Depreciation Expense Year 1 $Answer Year 2 Answer Year 3 Answer Year 4 Answer Year 5 Answer Year 6 Answer   b. Assume that the machine was purchased on September 1. Calculate each year’s depreciation expense for the period under each of the following depreciation methods: 1. Straight-line. 2. Double-declining balance.

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $61,290. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,890. The equipment was used for 1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 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.

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $416,000. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $34,400. The equipment was used for 2,520 hours during Year 1, 1,512 hours in Year 2, 2,016 hours in Year 3, and 1,152 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four 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 four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Units-of-Activity Method $ $ 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…

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?

information and question attached with image

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $282,600. The equipment was expected to have a useful life of four years, or 4,800 operating hours, and a residual value of $23,400. The equipment was used for 1,680 hours during Year 1, 1,008 hours in Year 2, 1,344 hours in Year 3, and 768 hours in Year 4. Required: 1.  Determine the amount of depreciation expense for the four 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 four years by each method. 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 $fill in the blank 1   $fill in the blank 2   $fill in the blank 3   Year 2 $fill in the blank 4   $fill in the blank 5   $fill in the blank 6   Year 3 $fill in the…

None

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $479,600. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $39,600. The equipment was used for 2,800 hours during Year 1, 1,680 hours in Year 2, 2,240 hours in Year 3, and 1,280 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four 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 four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method Units-of-Activity Method 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…

Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $248,600. The equipment was expected to have a useful life of four years, or 7,600 operating hours, and a residual value of $20,600. The equipment was used for 2,900 hours during Year 1, 2,400 hours in Year 2, 1,400 hours in Year 3, and 900 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 $fill in the blank 1 $fill in the blank 2 $fill…

Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for $37,800. The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $1,080. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 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, 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 Year Amount Year 1 $fill in the blank 5 Year 2 $fill…