A. Data The PATI Hotel bought a dishwashing machine in April 2021.

- Payment of $6,000 plus $200 for transportation and $600 for installation expenses. - It is an estimated useful life of 7 years. - A trade-in value of $500, after the seventh year. - A washing capacity of 300,000 pounds of use, warranty for 7 years, whichever comes first. - In the first year I wash 20,000 pounds, then 25,000 pounds and 18,000 pounds in the third year of use.

B. Make a table in Excel and set: 1. Annual depreciation using the straight-line method for life. 2. Depreciation and book value using units of production for the third year. 3. Depreciation and book value using the accelerated declining method of 1.25 for the first four years.

C. In the same table make the depreciation journal entries: DR and CR for each method.

D.Recommendation: 1. Which of the above calculation methods do you favor more? Why? 2. If at the end of the fourth year you can sell this machine for $2,000: would you sell it?