Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $ 2 3 8
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Question:
Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January for $ The equipment was expected to have a useful life of four years, or operating hours, and a residual value of $ The equipment was used for hours during Year hours in Year hours in Year and hours in Year
Required:
Determine the amount of depreciation expense for the four years ending December by a the straightline method, b the unitsofactivity method, and c the doubledecliningbalance 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 StraightLine Method UnitsofActivity Method DoubleDeclining
Balance Method
| Year | Straight-Line Method | Units-of-Activity Method | Double-Declining- Balance Method |
|---|---|---|---|
| Year 1 | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Year 2 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| Year 3 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 |
| Total | $fill in the blank 10 | $fill in the blank 11 | $fill in the blank 12 |
What method yields the highest depreciation expense for Year
What method yields the most depreciation over the fouryear life of the equipment?
Expert Answer:
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