Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $353,200. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $29,200. The equipment was used for 2,160 hours during Year 1, 1,674 hours in Year 2, and 1,566 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, 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 three years by each method. Note: For all methods, round the answer 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 Year 3 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment?

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $353,200. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $29,200. The equipment was used for 2,160 hours during Year 1, 1,674 hours in Year 2, and 1,566 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, 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 three years by each method. Note: For all methods, round the answer 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 Year 3 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment?

Name: Comparing Three Depreciation MethodsDexter Industries purchased packa
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Comparing Three Depreciation MethodsDexter Industries purchased packaging equipment on January 8 for $353,200. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and aresidual value of $29,200. The equipment w

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 5MC: A machine with a 4-year estimated useful life and an estimated 15% residual value was acquired on...

See similar textbooks