Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $86,400. The equipment was expected to have a useful life of 3 years, or 21,600 operating hours, and a residual value of $5,400, The equipment was used for 8,640 hours during Year 1, 6,480 hours in Year 2, and 6,480 hours in Year 3. Required: 1. Determine the amount of deprciation expense for the 3 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 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Depreciation Expense Units-of-Activity Method Year Year 1 Year 2 Year 3 Total Straight-Line Method 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method 3. What method yields the most depreciation over the 3-year life of the equipment?

Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $86,400. The equipment was expected to have a useful life of 3 years, or 21,600 operating hours, and a residual value of $5,400, The equipment was used for 8,640 hours during Year 1,6,480 hours in Year 2 , and 6,480 hours in Year 3. Required: 1. Determine the amount of deprciation expense for the 3 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 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. 2. What method yields the highest depreciation expense for Year 1 ? 3. What method yields the most depreciationer the 3 -year life of the equipment