Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $414,200. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $34,200. 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 Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ $ $ 95,000 95,000 95,000 95,000 380,000 Units-of-Activity Method $ $ $ $ $ Show Me How 133,000 79,800 106,400 60,800 380,000 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?

Comparing Three Depreciation Mothods Dextar Industries purchased packaging equipment on January 8 for $414,200. The equipment was axpected to have a uselul life of four yours, or 10,000 operating hours, and a ctaidyal value of 534,200 . The equipment was usad 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: balncicn method. Aiss determine the total seprechtion expense for the four yeurs by each method, Round the answer for each year to the nearest whole dollar