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Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000....

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Accounting

Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of 3 years,
or 14,400 operating hours, and a residual value of $3,600. The equipment was used for 5,760 hours during Year 1,4,320 hours in Year 2,
and 4,320 hours in Year 3.
Required:
Determine the amount of depreciation expense for the 3 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 depreclation expense for the 3 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 1?
What method yields the most depreciation over the 3-year life of the equipment?
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