$8\mathrm{.}4$ Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January $8$ for $$599,600.$ The equipment was expected to have a useful life of four years, or $10,000$ operating hours, and a residual value of $$49,600.$ The equipment was used for $3,500$ hours during Year $1,2,100$ hours in Year $2,2,800$ hours in Year $3,$ and $1,600$ 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 blank $7$ $fill in the blank $8$ $fill in the blank $9$

Year $4$ $fill in the blank $10$ $fill in the blank $11$ $fill in the blank $12$

Total $fill in the blank $13$ $fill in the blank $14$ $fill in the blank $15$

$2.$ What method yields the highest depreciation expense for Year $1?$

Straight$-$line methodUnits$-$of$-$activity methodDouble$-$declining$-$balance methodAll three depreciation methods

$3.$ What method yields the most depreciation over the four$-$year life of the equipment?

Straight$-$line methodUnits$-$of$-$activity methodDouble$-$declining$-$balance methodAll three depreciation methods