Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions Depreciation Expense Final Questions Instructions Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life

image text in transcribedimage text in transcribedimage text in transcribed

Instructions Depreciation Expense Final Questions Instructions Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three 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 three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.) 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment? Instructions Depreciation Expense Final Questions Instructions Depreciation Expense 1. Determine the amount of depreciation expense for the three 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 three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.) Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double- Declining- Balance Method Year 1 Year 2 Year 3 Total nstructions Depreciation Expense Final Questions tructions preciation Expense Final Questions 2. What method yields the highest depreciation expense for Year 12 pes 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is the law of Prgnanz and how can it be illustrated?

Answered: 1 week ago