ght- ciated over PR 10-2A Comparing three depreciation methods 081.2 equip Dexter Industries purchased packaging equipment on January 8 for $72,000. The e residual value of $4,500. The equipment was used for 7,600 hours during Year 1,6,000 ment was expected to have a useful life of three years, or 18,000 operating hours, and a hours in Year 2, and 4,400 hours in Year 3. Instructions 1. Determine the amount of depreciation expense for the three years ending December 31 declining-balance method. Also determine the total depreciation expense for the three by (a) the straight-line method, (b) the units-of-activity method, and (c) the double- years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: Depreciation Expense Straight- Units-of- Line Activity Year Method Method Double-Declining- Balance Method 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment