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Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $ 9 0 , 0 0 0 . The equipment was expected

Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $90,000. The equipment was expected to have a useful life of 3 years, or 18,000 operating
hours, and a residual value of $4,500. The equipment was used for 7,200 hours during Year 1,5,400 hours in Year 2, and 5,400 hours in Year 3.
Required:
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
What method yields the highest depreciation expense for Year 1?
What method yields the most depreciation over the 3-year life of the equipment?
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