Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $108,000. 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 depreciation 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

Year Straight-Line Method Units-of-Activity Method Double-Declining- Balance Method 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 6 Year 3 fill in the blank 7 fill in the blank 8 fill in the blank 9 Total $ fill in the blank 10 $ fill in the blank 11 $ fill in the blank 12 2. 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 3-year life of the equipment? Straight-line methodUnits-of-activity methodDouble-declining-balance methodAll three depreciation methods