PR $10-2$A Comparing three depreciation methods

OBJ. $2$

Monte's Coffee Company purchased packaging equipment on January $5,2014,$ for $$90,000.$ The equipment was expected to have a useful life of three years, or $20,000$ operating hours, and a residual value of $$6,000.$ The equipment was used for $8,900$ hours during $2014,7,100$ hours in $2015,$ and $4,000$ hours in $2016.$

Instructions

Determine the amount of depreciation expense for the years ended December $31,2014,2015,$ and $2016$ by $($a$)$ the straight$-$line method, $($b$)$ the units$-$of$-$output method, and $($c$)$ the double$-$declining$-$balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:

SHOW ANSWER

What method yields the highest depreciation expense for $2014?$

What method yields the most depreciation over the three$-$year life of the equipment?