14-15

Latt On Demand purchased a coffee drink machine on January 1, 20X1, for $44,000. Expected useful life is 10 years or 100,000 drinks. In 201,3,000 drinks were sold, and in 202, 14,000 drinks were sold. Residual value is $4,000. Determine the depreciation expense for 201 and 202 using the double-declining-balance method, prepare a schedule that shows annual depreciation expense, accumulated depreciation, and book value for 201 and 202. Provide all calculations. Latt On Demand purchased a coffee drink machine on January 1, 20X1, for $44,000. Expected useful life is 10 years or 100,000 drinks. In 20X1, 3,000 drinks were sold, and in 20X2, 14,000 drinks were sold. Residual value is $4,000. Determine the depreciation expense for 201 and 202 using the units-of-production method, prepare a schedule that shows annual depreciation expense, accumulated depreciation, and book value for 201 and 202. Provide all calculations