Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $802,200. The equipment...

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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $802,200. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $66,200. 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. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation Expense Units-of-Activity Double-Declining- Straight-Line Method Method Balance Method 184,000 257,600 $ 401,100 184,000 154,560 $ 401,100 X 184,000 206,080 $ 25,069 X 184,000 $ 117,760 $ 18,782 X 736,000 $ 736,000 736,000 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 equipment? All three depreciation methods Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $802,200. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $66,200. 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. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation Expense Units-of-Activity Double-Declining- Straight-Line Method Method Balance Method 184,000 257,600 $ 401,100 184,000 154,560 $ 401,100 X 184,000 206,080 $ 25,069 X 184,000 $ 117,760 $ 18,782 X 736,000 $ 736,000 736,000 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 equipment? All three depreciation methods