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Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.
Assume Purity Ice Cream Company, Inc., in Ithaca, NY bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful lfe was four years. and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5.500 hours in Year 1. 3,800 hours in Year 2, 3,200 hours in Year 3. and 3,500 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. Do not round intermediate calculations a. Straight-line. reciati Book Value At acquisition b. Units-of-production (u four decimal places for the per unit output factor) se Net Depreciation Accumulated Depreciation Book Value Expense At acquisitionStep by Step Solution
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