Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $108,000. The equipment was expected to have a useful life of thre or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Yea 8,100 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the unit activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by eacl method. Round the final answers for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 Year 2 %$4 %$4 Year 3 Total

Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $108,000. The equipment was expected to have a useful life of thre or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Yea 8,100 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the unit activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by eacl method. Round the final answers for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 Year 2 %$4 %$4 Year 3 Total

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Description: Comparing three depreciation methodsDexter Industries purchased packaging equipment on January 8 for $108,000. The equipment was expected to have a useful life of three yeor 27,000 operating hours, and a residual value of $5,400. The equipment was u

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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