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Dexter Industries purchased packaging equipment on January 8 for $90,000. The equipment was expected to have a useful life of 3 years, or 22,500 operating
Dexter Industries purchased packaging equipment on January 8 for $90,000. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3.
Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c)
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