m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. 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. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method S 3. What method yields the most depreciation over the 3-year life of the equipment? Check My Work 2 more Check My Work uses remaining. Next
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. 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. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method S 3. What method yields the most depreciation over the 3-year life of the equipment? Check My Work 2 more Check My Work uses remaining. Next
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 29P
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Question
![m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign...
eBook
Show Me How
A ✩
Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or
22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and
6,750 hours in Year 3.
Required:
1. 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.
Year
Year 1
Year 2
Year 3
Total
Straight-Line
Method
Depreciation Expense
Units-of-Activity
Method
2. What method yields the highest depreciation expense for Year 1?
Double-Declining-
Balance Method
S
3. What method yields the most depreciation over the 3-year life of the equipment?
Check My Work 2 more Check My Work uses remaining.
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc039a27-3c7a-4b28-898f-49373060440f%2Fb75a59a9-1ae1-4325-9e7e-ba7179a862b9%2Fm59c169_processed.jpeg&w=3840&q=75)
Transcribed Image Text:m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign...
eBook
Show Me How
A ✩
Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or
22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and
6,750 hours in Year 3.
Required:
1. 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.
Year
Year 1
Year 2
Year 3
Total
Straight-Line
Method
Depreciation Expense
Units-of-Activity
Method
2. What method yields the highest depreciation expense for Year 1?
Double-Declining-
Balance Method
S
3. What method yields the most depreciation over the 3-year life of the equipment?
Check My Work 2 more Check My Work uses remaining.
Next
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