Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. comparing three depreciation methods dexter indus

Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $86,400....

70.2K

Verified Solution

Question

Accounting

Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $86,400. The equipment was expected to have a useful life of 3 years, or 21,600 operating hours, and a residual value of $5,400. The equipment was used for 8,640 hours during Year 1,6,480 hours in Year 2, and 6,480 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 depreciation 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 vields the most depreciation over the 3-year life of the equipment?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

The de Broglie wavelength of the electron in the ground state of the hydrogen atom...

Medical Sciences
1.2K views

draw a schematic diagram of an activated sludge system that includes a \"selector\". describe the function...

Mechanical Engineering
1.2K views

A. Identify, discuss and analyse the project management techniques and software such as Trello, Slack, meeting...

General Management
1.2K views

In 2011, two Brown University seniors, Walker Williams and Evan Stites-Clayton, were sad that their favorite...

Biology
1.2K views

Why do writers do not state all the information directly in their works Writers expect...

Statistics
1.2K views

1 2 0 1 0 1 3 LO a Determine characteristic polynomial of A b...

Algebra
1.2K views

Write the equation of the line in standard form Ax By C for the described...

Algebra
1.2K views

Find the product and write it in lowest terms 6 5 7 4

Accounting
1.2K views

A 9%, $1,000 par corporate bond is trading at $1,100. What is the current yield?...

Accounting
1.2K views

Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets...

Accounting
1.2K views

The total cost function for a product is C(x) = 700 ln(x + 10) +...

Finance
1.2K views

1 05 oints Streamsong Credit Bank is offering 6.4 percent compounded daily on its savings...