S10-5 Calculating depreciation by three methods-first year only At the beginning of the year, JetQuick Airlines purchased a used Boeing jet for $43 million. JetQuick expects the plane to remain useful for five years (4 million kilometres) with a residual value of $7 million. JetQuick expects the plane to be flown for 1.4 million kilometres the first year. Requirements Calculate JetQuick's first-year depreciation on the plane using the following methods: 1 a straight line b units of production c reducing balance (use 2 x the SL rate). 2 Show the plane's carrying amount at the end of the first year under each depreciation method.

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?

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…

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…