Comparing Three Depreciation Methods

Dexter Industries purchased packaging equipment on January 8 for $422,400. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $34,800. The equipment was used for 2,380 hours during Year 1, 1,428 hours in year 2, 1940 hours in year 3, and 1,088 hours in year 4

Required:

1. determine the amount of deprecuation expense for the four years ending December 31 by (a) the straight-line method, (b) units-of-activity method and (c) double-declining-balance method. Also determine the total depreciatyon expense for the for years by each method. round to nearest whole dollar

Comparing Three Debreciation Methods The equipment was used for 2,300 hours during Year 1,1,428 hours in Year 2,1,904 hours in Year 3 , and 1 , 0s8 hours in Year 4. Pequired: Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. 2. What method yields the highest deprociation expense for Year 1 ? posble-dectining-balance method * 3. What method yielos the most depreciation over the four-vear life of the equipment