4 purg professio photography gnung equipmen $128,000. The equipment was expected to have a useful life of four years, or 25,000 operating hours, and a residual value of $11,000. The equipment was used for 8,230 hours in year 1.7,550 hours in year 2, 6,400 hours in year 3, and 2,820 hours in year 4. 5 6 1. Determine the amount of depreciation expense for the years ended December 31, year 1, year 2, year 3, and year 4, by (a) straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years 7 B 2. What method yields the highest depreciation expense for year 1? 0 10 3. What method yields the most depreciation over the four-year life of the equipment? 11 Straight-line method: (Cost Residual Value 1 Years Yearly Depreciation Units-of-activity method: (Cost Residual Value Total Hours Rate Rate Hours Yearly Depreciation Year 1 Year 2 Year 3 Year 4 Double-declining-balance method: Depreciable Balance Rate Yearly Depreciation Year 1 Year 2 Year 3 Since depreciation cannot cause book value to fall below residual value: Depreciable Residual Balance Value Yearly Depreciation Year 4 Chapter 10 Excel Exercise Instructions: Gracie West Interiors purchased professional photography and lighting equipment on January 4 for $128,000. The equipment was expected to have a useful life of four years, or 25,000 operating hours, and a residual value of $11,000. The equipment was used for 8,230 hours in year 1, 7,550 hours in year 2, 6,400 hours in year 3, and 2.820 hours in year 4 1. Determine the amount of depreciation expense for the years ended December 31, year 1, year 2, year 3, and year 4, by (a) straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. 2. What method yields the highest depreciation expense for year 1? 3. What method yields the most depreciation over the four-year life of the equipment