PR 9-2A Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 Obj. 2 to have a useful life of three years, or 18,000 operating hours, and a residual value of hours in Year 3. Instructions 1. 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-declining- balance method. Also determine the total depreciation expense for the three years by each (Continued) method. The following columnar headings are suggested for recording the depreciation ex amounts: pense Depreciation Expense Straight Line Units-of Double-Declining- Activity Method Balance Method YearMethod 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