PR 10-2A Comparing three depreciation methods Monte's Coffee Company purchased packaging equipment on January 5,2014 , for $90,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,900 hours during 2014,7,100 hours in 2015 , and 4,000 hours in 2016. Instructions 1. Determine the amount of depreciation expense for the years ended December 31 , 2014, 2015, and 2016 by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: 2. What method yields the highest depreciation expense for 2014? 3. What method yields the most depreciation over the three-year life of the equipment