PR $9-2$A Comparing three depreciation methods

Obj. $2$

Dexter Industries purchased packaging equipment on January $8$ for $$72,000.$ The equipment was expected to have a useful life of three years, or $18,000$ operating hours, and a residual value of $$4,500.$ The equipment was used for $7,600$ hours during Year $1,6,000$ hours in Year $2,$ and $4,400$ hours in Year $3.$

Instructions

Determine the amount of depreciation expense for the three years ending December $31,$ by $($a$)$ the straight$-$line method, $($b$)$ the units$-$of$-$activity method, and $($c$)$ the double$-$decliningbalance 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:

$\backslash$table$[[,$Depreciation Expense$],[,$Straight$-,$Units$-$of$-,$Double$-$Declining$-],[$Year$,$Line,Activity,Balance$],[,$Method,Method,Method$]]$

What method yields the highest depreciation expense for Year $1?$

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