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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $ 2 5 9 , 4 0 0 . The equipment was

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Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January 8 for $259,400. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $21,400. The equipment was used for 2,380 hours during Year 1,1,428 hours in Year 2,1,904 hours in Year 3, and 1,088 hours in Year 4.
Required:
Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar.
\table[[Depreciation Expense],[Year,Straight-Line Method,\table[[Units-of-Activity],[Method]],\table[[Double-Declining-],[Balance Method]]],[\bar ( Year 1),$ fill in the blank 1,$ fill in the blank 2,$ fill in the blank 3],[Year 2,$ fill in the blank 4,$ fill in the blank 5,$ fill in the blank \epsi lon],[Year 3,$ fill in the blank 7,$ fill in the blank 8,$ fill in the blank sube],[Year 4,$ fill in the blank 10,$ fill in the blank 11,$ fill in the blank 12],[Total,$ fill in the blank 13,$ fill in the blank 14,$ fill in the blank 15]]
What method yields the highest depreciation expense for Year 1?
Straight-line methodUnits-of-activity methodDouble-declining-balance methodAll three depreciation methods
3. What method yields the most depreciation over the four-year life of the equipment?
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