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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $415,000....

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Accounting

Comparing Three Depreciation Methods
Dexter Industries purchased packaging equipment on January 8 for $415,000. The equipment was expected to have a useful life of four years, or 6,800
operating hours, and a residual value of $34,200. The equipment was used for 2,380 hours during Year 1,1,428 hours in Year 2,1,904 hours in Year 3,
and 1,088 hours in Year 4.
Required:
Determine the amount of depreciation expense for the four 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 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 1?
Double-declining-balance method
What method yields the most depreciation over the four-year life of the equipment?
All three depreciation methods
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