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Dexter Industries purchased packaging equipment on January 8 for $902,600. The equipment was expected to...

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Accounting

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Dexter Industries purchased packaging equipment on January 8 for $902,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $74,600. The equipment was used for 3,220 hours during Year 1, 1,932 hours In Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4. Required: 1. 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 Units-of-Activity Double-Declining Straight-Line Method Balance Method Year Method Year 1 Year 2 Year 3 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the four-year life of the equipment

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