Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $274,600. The equipment was expected to have a usef life of three years, or 6,300 operating hours, and a residual value of $22,600. The equipment was used for 2,520 hours during Year 1,1,953 hours in Year 2 , and 1,827 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, 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 three years by each method. Note: For all methods, round the answer for each year to the nearest whole dollar. 2. What method yields the highest depreciation expense for Year 1 ? Double-declining-balance method 3. What method yields the most depredation over the three-year life of the equipment? All three depreciation methods Asset cost minus residual value equals depreciable cost. Sum the yearly depreciation to determine total depreciation. or chesk My Work Annual units-of-production depreciation allocates the cost of the asset equally over the units produced (hours). The double-declining rate is two times the straight-line rate. Book value is the asset cost minus accumulated depredation. In the first year, the balance in the accumulated depreciation account is zero. Compare the total depreciation for all methods over the time period. Recall that straight-line depreciation aliocates the depredable cost of the asset equally over the period of use, while double-dedining dethod is an acrelerated