Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $437,400. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $36,200. The equipment was used for 2,380 hours during Year 1, 1,428 hours in Year 2, 1,904 hours in Year 3, and 1,088 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the three 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 Year 1 Units-of-Activity Double-Declining- Method Balance Method Year 2 Year 31 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method 3. What method yields the most depreciation over the three-year life of the equipment? All three depreciation methods E Check My Work Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $48,000; 20Y2, $96,000; 2013, $216,000; 20Y4, $264,000; 20YS, $348,000; and 20Y6, $420,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 3% stock, $100 par, and 100,000 shares of common stock, $20 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 2011. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0". Preferred Dividends Year Total Dividends Total 20Y1 $ 48,000 2012 96,000 2013 215,000 2014 264,000 2015 2016 348,000 420,000 Common Dividends Per Share Total Per Share 2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places. Average annual dividend for preferred Average annual dividend for common per share per share 3. Assuming a market price per share of $158 for the preferred stock and $26 for the common stock, determine the average annual percentage return on initial eBook Show Me How 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 2011. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0". Preferred Dividends Year Total Dividends Total 20Y1 $ 48,000 2012 96,000 20Y3 216,000 2014 264,000 2015 348,000 2016 420,000 Common Dividends Per Share Total Per Share 2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places. Average annual dividend for preferred Average annual dividend for common per share per share 3. Assuming a market price per share of $158 for the preferred stock and $26 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to two decimal places. Preferred stock Common stock % %