26th

Problem 10-28 Score An astersk( will appear to the right of an incomect entry 2015 2016 2017 2018 Cost Cost 016 2017 Since depreciation cannot cause book value to fall below residual value The method that yields the most depreciation expense in 2015 is the The method that yields the most total depreciation over the four years is the PR 10-2A Comparing three depreciation methods oBJ.2 1 2014 straight Monte's Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,900 hours during 28000 2014, 7,100 hours in 2015, and 4,000 hours in 2016. Instructions 1. Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, and 2016 by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three yeary by each method. The following columnar headings are suggested for recordirg e depreciation expense amounts: Depreciation Expense Straight- Line Units-of Output Method Balance Method Year Method 2. What method yields the highest depreciation expense for 20142 3. What method yields the most depreciation over the three-year life of the equipment