Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January for $ The equipment was expected to have a useful life of years,
or operating hours, and a residual value of $ The equipment was used for hours during Year hours in Year
and hours in Year
Required:
Determine the amount of depreciation expense for the years ending December by a the straightline method, b the unitsof
activity method, and c the doubledecliningbalance method. Also determine the total depreclation expense for the years by each
method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each
year to the nearest whole dollar.
Depreciation Expense
What method yields the highest depreciation expense for Year
What method yields the most depreciation over the year life of the equipment?
