Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January 8 for $558,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $46,000. 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.

Depreciation Expense
Year	Straight-Line Method		Units-of-Activity Method		Double-Declining- Balance Method
Year 1	$		$		$
Year 2	$		$		$
Year 3	$		$		$
Year 4	$		$		$
Total	$		$		$