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A. Exercises to deliver: Depreciation A. Data: Hotel PATI bought a dishwasher. a) I pay $ 6,000 plus $ 200 for transportation and $ 600
A. Exercises to deliver: Depreciation A. Data: Hotel PATI bought a dishwasher. a) I pay $ 6,000 plus $ 200 for transportation and $ 600 for installation expenses. b) A useful life of 7 years was estimated. c) A trade-in value of $ 1,000, after the seventh year. d) A wash capacity of 300,000 pounds of use, 7-year warranty, whichever occurs first. e) In the first year I wash 20,000 pounds, then 25,000 pounds and 18,000 pounds in the third year of use. B. Determine: 1. Annual depreciation using the straight-line method for life. 2. Depreciation and book value for the third year using the sum of digits method. 3. Depreciation and book value using production units for the third year. 4. Depreciation and book value using the accelerated decreasing method of 1.5 for the first three years. C. Recommendation: 1. Which method, calculated above, do you favor the most? Why
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