PR 9-2A 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 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 method The following columnar headings are suggested for recording the depreciation expense amounts. Depreciation Expense Straight- Units-of- Double-Declining- Line Activity Balance Year Method Method 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? Va. Year 1: $65.250