Comparing Three Depreciation Methods 1. 2. Dexter Industries purchased packaging equipment on January 8 for...
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Comparing Three Depreciation Methods 1. 2. Dexter Industries purchased packaging equipment on January 8 for $314,000. The equipment was expected to have a useful life of four years, or 6,400 operating hours, and a residual value of $26,000. The equipment was used for 2,240 hours during Year 1, 1,344 hours in Year 2, 1,792 hours in Year 3, and 1,024 hours in Year 4. 3. Required: 4. 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 four years by each method. Round the answer for each year to the nearest whole dollar. 5. Depreciation Expense Units-of-Activity Straight-Line Method Method 6. Year Double-Declining- Balance Method 7. Year 1 Year 2 8. Year 3 9. Year 4 Total 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? Check My Work 1 more Check My Work uses remaining. Previous Next Progress: 8/9 items
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