Question: Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $ 8 3 9 , 4 0 0 . The equipment was

Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January 8 for $839,400. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $69,400. 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:
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 doubledeclining-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
\table[[Year,Straight-Line Method,\table[[Units-of-Activity],[Method]],\table[[Double-Declining-],[Balance Method]]],[Year 1,vdots,vdots,vdots
 Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!