please help

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $500,400. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $41,400. 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-declining-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 Year Units-of-Activity Method Double-Declining-Balance Method Straight-Line Method 153,000 Year 1 183,600 Year 2 153,000 142,290 Year 3 153,000 133,110 Total 459,000 459,000 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? Feedback Check My Work Asset cost minus residual value equals depreciable cost. Sum the yearly depreciation to determine total depreciation Annual units-of-production depreciation allocates the cost of the asset equally over the units produced (hours). The double-declining rate is two times the straight-line rate. Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero. Previous Next