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Fonte's Coffee Compary purchased packaging equipment on January 5, 2014, for $111,500. The equipment was expected to have a useful life of three years, or

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Fonte's Coffee Compary purchased packaging equipment on January 5, 2014, for $111,500. The equipment was expected to have a useful life of three years, or 20,000 operating mours, and a residual value of $7,500. The equipment was used for 8,050 hours during 2014,7,040 hours in 2015, and 4,010 hours in 2016. Required: 1. Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, and 2016 by (a) the straight-ling method (b) the units-of-outout method, and (c) the double-declining balance method. Also determine the total depreciation expense for the three years by each method. (Note: For STRAIGHT-LINE ONLY, round onch year to the nearest whole dollar and round the last year of depreciation as necessary. For DECLINING BALANCE ONLY, round the Butiplier to four decimal places. Then round the answer for each year to the nearest whole dollar) 2 What method yields the highest depreciation expense for 2014? 3. What method yields the most depreciation over the three year ile of the equipment? Depreciation Expense 1. Determine the amount of depreciation expense for the years ended December 31, 2014, 2015 and 2016 by (a) the strane method (b) the units of output method, and (c) the double-declining balance method. Also determine the total depreciation expense for the three yours by each method. (Note: For STRAIGHT-LINE ONLY, round each year to the nearest whole dollar and round the last year of depreciation as necessary. For DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar) Depreciation Expense Year Straight-Line Method Units-of-Output Method Double Declining Balance Method 2 2014 5 2015 2016 5 Total 2. What method yields the highest depreciation expense for 2014? Straight-line method Units-of-output method Double-declining-balance method All three depreciation methods 3. What method yields the most depreciation over the three-year life of the equipment? Straight-line method Units-of-output method Double-declining-balance method All three depreciation methods

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