Question
Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of
Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $16,800. The estimated useful life was four years, and the residual value was $1,280. Assume that the estimated productive life of the machine was 9,700 hours. Actual annual usage was 3,880 hours in Year 1; 2,910 hours in Year 2; 1,940 hours in Year 3; and 970 hours in Year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Complete a depreciation schedule using the Straight-line method. (Do not round intermediate calculations.) Accumulated Depreciation Net Book Value Year Depreciation Expense At acquisition 1 21 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 10 Complete a depreciation schedule using the units-of-production method. (Use two decimal places for the per u factor. Do not round intermediate calculations.) Depreciation Expense Accumulated Depreciation Net Book Value At acquisition Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete a depreciation schedule using the double-declining-balance method. (Do not round intermediate calculations.) Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisitionStep by Step Solution
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