Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $782,200. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $64,600. 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-line method, (b) the units-of-activity method, and (c) the double-declining-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
Year	Straight-Line Method		Units-of-Activity Method		Double-Declining- Balance Method
Year 1
Year 2
Year 3
Year 4
Total

2. What method yields the highest depreciation expense for Year 1?

Straight-line method

Units-of-activity method

Double-declining-balance method

All three depreciation methods

3. What method yields the most depreciation over the four-year life of the equipment?

Straight-line method

Units-of-activity method

Double-declining-balance method

All three depreciation methods