Question
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $353,200. The equipment was expected to have a useful life of four
Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January 8 for $353,200. The equipment was expected to have a useful life of four years, or 6,000 operating hours, and a residual value of $29,200. The equipment was used for 2,100 hours during Year 1, 1,260 hours in Year 2, 1,680 hours in Year 3, and 960 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.
Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining- Balance Method Year 1 $ $ Year 2 $ $ Year 3 $ $ $ Year 4 $ $ Total $ $ $
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