Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $599,600. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $49,600. The equipment was used for 3,500 hours during Year 1, 2,100 hours in Year 2, 2,800 hours in Year 3, and 1,600 hours in Year 4.

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $599,600. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $49,600. The equipment was used for 3,500 hours during Year 1, 2,100 hours in Year 2, 2,800 hours in Year 3, and 1,600 hours in Year 4. Required: A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life, 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 Units-of-Activity Straight-Line Method Method Year Double-Declining- Balance Method Year 1 Year 2 Year 3 Year 4 Total 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