A. Data:

The PATI Hotel acquired a dishwasher, model GE LP-75, in the month of May 2021.

a) I pay $ 6,000 plus $ 200 for transportation and $ 600 for installation expenses.

b) A useful life of 6 years was estimated.

c) A trade-in value of $ 500, after the sixth year.

d) 300,000-hour wash capacity, 6-year warranty, whichever comes first.

e) In the first year I wash 20,000 hours of use, then 25,000 hours of use and 18,000 hours of use in the third year of use.

B. Make a table for each method in Excel and establish:

1. Annual depreciation using the straight-line method (straight line) for life.

2. Depreciation and book value using units of production for the third year.

3. Depreciation and book value using the 1.25 accelerated decreasing method for the first four years.

C. In the same table, enter the depreciation journal: DR and CR, in each method at the end of December 31 of the corresponding year.

D. Recommendation:

1. Which method, of the above calculated, do you favor the most? Why?

2. If after the fourth year you can sell this machine for $ 2,000, would you sell it?

B. Tables:

Methods:

C. DR and CR accounting entry

D. Make your recommendations