Dexter Industries purchased packaging equipment on January 8

Last updated: 11/14/2023

Dexter Industries purchased packaging equipment on January 8 for 81 900 The equipment was expected to have a useful life of 3 years or 20 000 operating hours an a residual value of 4 500 The equipment was used for 7 600 hours during Year 1 6 000 hours in Year 2 and 6 400 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 Depreciation Expense Units of Activity Method Straight Line Method Year Year 1 Year 2 Year 3 Total 2 What method yields the highest depreciation expense for Year 1 Double declining balance method Double Declining Balance Method the most depreciation over the 3 year life of the equipment