Comparing ThreeDepreciationMethods

Dexter Industries purchased packaging equipment on January 8 for $662,200. The equipment was expected to have a useful life of three years, or 7,500 operating hours, and aresidual valueof $54,700. The equipment was used for 3,000 hours during Year 1, 2,325 hours in Year 2, and 2,175 hours in Year 3.

Required:

1.Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a) thestraight-line method, (b) theunits-of-activity method, and (c) thedouble-declining-balance method. Also determine the total depreciation expense for the three years by each method.

Note: For all methods, round the answer for each year to the nearest whole dollar.