Dexter Industries purchased packaging equipment on January 8 for $304,400. The equipment was expected to have a useful life of three years, or 5,700 operating hours, and a residual value of $25,100. The equipment was used for 2,280 hours during Year 1, 1,767 hours in Year 2, and 1,653 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) 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.

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

Show Me How eBook Calculator Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $304,400. The equipment was expected to have a useful life of three years, or 5,700 operating hours, and a residual value of $25,100. The equipment was used for 2,280 hours during Year 1, 1,767 hours in Year 2, and 1,653 hours n 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) the straight-line method, (b) the units-of-activity method, and (c) the double-decl ining-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. Depreciation Expense Units-of-Activity Method Double-Declining-Balance Method Year Straight-Line Method 93,100 111,720 Year 1 $1 Year 2 93,100 86,583 Year 3 93,100 80,997 Total 279,300 279,300 279,300 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method 3. What method yields the most depreciation over the three-year life of the equipment? All three depreciation methods Next Check My Work