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i want to know how i can do the units of activity method and the double declining because i dont understand Comparing Three Depreciation Methods
i want to know how i can do the units of activity method and the double declining because i dont understand
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $481,400. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $39,800. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 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 four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Units-of-Activity Double-Declining Straight-Line Method Method 110,400 X Year Balance Method Year 1 Year 2 110,400 5 Year 3 110,400 X X X X X Year 4 110,400 Total 441,600 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method 3. What method yields the most depreciation over the four-year life of the equipment? Adresin methode Step by Step Solution
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