14

NO ME How Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $719,400. The equipment was expected to have a useful fe of four years, or 10,000 operating hours, and a residual value of $59,400. The equipment was used for 3.500 hours during Year 1, 2.100 hours in Year 2, 2.500 hours in Year 3, and 1,600 hours in Year 4 Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-titance 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 Year Straight-Line Method Units-of-Activity Method Double-Declining Balance Method Year 1 Year 2 Year Year Total 2. Whatod yields the highest depreciation expers for Year 17 Double-declining-balance method 3. What method is the most depreciation over the four-year e or the woment? All three depreciation methods set cost minusual value guals depreciable cost. Surn the yearly depreciation to determina total depreciation Anne-production depreciation cales the cost of the equally over le units produced hours The double-decay tatele mes the straight-line rate. Book value is the asset con minus accumulated depreciation. In the first year, the balance in the accumulated deprecation certiser Che total det for all methods over the time period. Hecall that startint decation allocate the deseable cost of the wall over the period of a while double declining methods in ahal