Dexter Industries purchased packaging equipment on January 8 for $926,600. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $76,600. The equipment was used for 3,500 hours during Year 1, 2,100 hours in Year 2, 2,800 hours in Year 3, and 1,600 hours in Year 4.