problem 10-2A

4. What would IL if the cost of filling and I sified as Land Improvements rather l depreciated over a 20-year life using the double OBJ.2 for $72,000. The equip- 00 operating hours, and a ours during Year 1, 6,000 -1: straight- Fation, PR 10-2A Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72.00 ment was expected to have a useful life of three years, or 18,000 operati residual value of $4,500. The equipment was used for 7,600 hours during hours in Year 2, and 4,400 hours in Year 3. Instructions vears ending December 31 thod, and (c) the double- ation expense for the three 1. Determine the amount of depreciation expense for the three years ending De by (a) the straight-line method, (b) the units-of-activity method, and (c) the declining-balance method. Also determine the total depreciation expense for the vears by each method. The following columnar headings are suggested for record the depreciation expense amounts: Straight- Line Method Depreciation Expense Units-of Double-Declining- Activity Balance Method Method Year 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