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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $171,000. The equipment was expected to have a useful life of four years, or 5,600 operating hours, and a residual value of $14,200. The equipment was used for 1,960 hours during Year 1, 1,176 hours in Year 2, 1,568 hours in Year: and 896 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- Year Straight-Line Method Method Balance Method Year 1 Year 2 Year 3 Year 4 Total

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $171,000. The equipment was expected to have a useful life of four years, or 5,600 operating hours, and a residual value of $14,200. The equipment was used for 1,960 hours during Year 1, 1,176 hours in Year 2, 1,568 hours in Year: and 896 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- Year Straight-Line Method Method Balance Method Year 1 Year 2 Year 3 Year 4 Total

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...
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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $171,000. The equipment was expected to have a useful life of four years, or 5,600 operating hours, and residual value of $14,200. The equipment was used for 1,960 hours during Year 1, 1,176 hours in Year 2, 1,568 hours in Year 3, and 896 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- Year Straight-Line Method Method Balance Method Year 1 Year 2 Year 3 Year 4 Total
Transcribed Image Text:Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $171,000. The equipment was expected to have a useful life of four years, or 5,600 operating hours, and residual value of $14,200. The equipment was used for 1,960 hours during Year 1, 1,176 hours in Year 2, 1,568 hours in Year 3, and 896 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- Year Straight-Line Method Method Balance Method Year 1 Year 2 Year 3 Year 4 Total
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