PR 9-2A Comparing three depreciation methods Obj. 2 ht. Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment stion, was expected to have a useful life of three years, or 18.000 operating hours, and a residual 2,500 value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. PLATE Instructions 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 three years by each (Continued) Chapter 9 Long-Term Assets: Fixed and Intany ng the depreciation thod. The following columnar headings are suggested for recording the expense amounts: Straight- Line Method Depreciation Expense Units-of- Double-Declining- Activity Balance Method Method Year What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipe
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