Dexter Industries purchased packaging equipment on January 8 for $745,600. The equipment was expected to have...

 

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Dexter Industries purchased packaging equipment on January 8 for $745,600. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $61,600. 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. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation Expense Straight-Line Method $ 171,000 171,000 171,000 171,000 684,000 Units-of-Activity Method $ $ $ Double-Declining- Balance Method $ Incorrect Dexter Industries purchased packaging equipment on January 8 for $745,600. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $61,600. 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. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation Expense Straight-Line Method $ 171,000 171,000 171,000 171,000 684,000 Units-of-Activity Method $ $ $ Double-Declining- Balance Method $ Incorrect

Answer rating: 100% (QA)

a StraightLine Method Year 1 745600 61600 684000 4 years 171000 year Year 1 D... View the full answer