Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January 8 for $892,400. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $73,600. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4.