Comparing Three Depreciation Methods

Dexter industries purchased packaging equipment on January 8 for $317,800 equipment was expected to have a useful life of three years or 5400 operating hours and a residual value of $26,200 the equipment was used for 2160 hours during year one, 1674 hours in year two, and 1566 hours in year three.

Comparing Three Depreciation Methods Dedter Industries purchased packaging equipment on January 8 for $317,800. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $26,200. The equipment was used for 2,160 hours during Year 1, 1,674 hours in Year 2, and 1,566 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1 Year 2, Year 3, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double dedining-balance method. Also determine the total depreciation expense for the three years by each method. Note: For all methods, round the answer for each year to the nearest whole dollar Depreciation Expense Straight-Line Method Units of Activity Method Year Double Declining Balance Method Year 1 Year 2 Year 3 Total 2. What method vields the highest depreciation expense for Year 17 3. What method vields the most depreciation over the three-year life of the Next Check My Work 5 more Check My Woman ne