Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January $8$ for $$331,400.$ The equipment was expected to have a useful life of four years, or $7,600$ operating hours, and a residual value of $$27,400.$ The equipment was used for $2,660$ hours during Year $1,1,596$ hours in Year $2,2,128$ hours in Year $3,$ and $1,216$ hours in Year $4.$

Required:

$1.$ 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.Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January $8$ for $$331,400.$ The equipment was expected to have a useful life of four years, or $7,600$ operating hours,

and a residual value of $$27,400.$ The equipment was used for $2,660$ hours during Year $1,1,596$ hours in Year $2,2,128$ hours in Year $3,$ and $1,216$ hours in Year $4.$

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.

Depreciation Expense

What method yields the highest depreciation expense for Year $1?$

What method yields the most depreciation over the four$-$year life of the equipment?