Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January for $ The equipment was expected to have a useful life of four years, or
operating hours, and a residual value of $ The equipment was used for hours during Year hours in Year hours in Year
and hours in Year
Required:
Determine the amount of depreciation expense for the four years ending December by a the straightline method, b the unitsofactivity
method, and c the doubledecliningbalance 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.
Depreciation Expense
What method yields the highest depreciation expense for Year
Doubledecliningbalance method
What method yields the most depreciation over the fouryear life of the equipment?
All three depreciation methods
