Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4 500. The equipment was used for 7.600 hours during Year 1. 6.000 hours in Year 2 and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three 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 three years by each method. 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 $ 22,500 $ 28,500 $ 47,952 X Year 2 22,500 $ 22,500 16,016 X Year 3 $ 22,500 516,500 5,349 x Total $ 67,500 $ 67,500 $ 69,317 x 2. What method yields the highest depreciation expense for Year 17 Double-declining-balance method 3. What method yields the most depreciation over the three-year life of the equipment? All three depreciation methods Transactions for fixed assets, including sale Instructions Chart of Accounts Journal Instructions The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4. Purchased a used delivery truck for $26,000, paying cash. Nov. 2. Dec. 31. Paid garage $825 for miscellaneous repairs to the truck. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $2,000 for the truck. Year 2 Jan. 6. Apr. 1. June 11. Dec. 31. Purchased a new truck for $60,000, paying cash. Sold the used truck for $14,000. (Record depreciation to date in Year 2 for the truck.) Paid garage $280 for miscellaneous repairs to the truck. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated life of five years. Year 3 July 1. Oct. 2. Purchased a new truck for $65,000, paying cash. Sold the truck purchased January 6, Year 2, for $19,520. (Record depreciation to date for Year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $6,000 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles