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1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-ad method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Rou answer for each year to the nearest whole dollar.

1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-ad method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Rou answer for each year to the nearest whole dollar.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $351,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $29,000. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours 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 th answer for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Straight-line method Units-of-activity method $ Depreciation Expense Double-declining-balance method All three depreciation methods Units-of-Activity Method $ 2. What method yields the highest depreciation expense for Year 1? $ Double-Declining- Balance Method $ ation over the four-year life of the equipment?
Transcribed Image Text:Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $351,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $29,000. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours 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 th answer for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Straight-line method Units-of-activity method $ Depreciation Expense Double-declining-balance method All three depreciation methods Units-of-Activity Method $ 2. What method yields the highest depreciation expense for Year 1? $ Double-Declining- Balance Method $ ation over the four-year life of the equipment?
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