10.9

Comparing Three Depredation Methods Dexter Industries purchased packaging equipment on January 8 for $912,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $75,400. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-aine method, (b) the units-of-activity method, and (c) the double-dedining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Units-of-Activity Straight-Une Method Method Year Double-Declining- Balance Method Year 1 $ 209,300 293,020 456,300 Year 2 209,300 175,812 228,150 Year 3 209,300 234,416 Year 4 209,300 133,952 V Total 837,200 7 837,200 2. What method yields the highest depreciation expense for Year 17 Double-declining-balance method 3. What method yields the most depreciation over the four year life of the equipment