Breyer Company purchased packaging equipment on January 3, 2010, for $101,250. The equipment was…

Breyer Company purchased packaging equipment on January 3, 2010, for $101,250. The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $7,500. The equipment was used for 9,500 hours during 2010, 8,400 hours in 2011, and 7,100 hours in 2012. Instructions 1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, and 2012, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: 2. What method yields the highest depreciation expense for 2010? 3. What method yields the most depreciation over the three–year life of theequipment?

 

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