CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5]

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Nicoles Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $16,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,450 hours; year 2, 2,350 hours; year 3, 2,100 hours; year 4, 2,100 hours; and year 5, 1,000 hours.

CC9-1 (Algo) Part 1

Required:

1. Complete a depreciation schedule for each of the alternative methods.

1. Straight-line.
2. Units-of-production.
3. Double-declining-balance.

4. year	depreciation expense	accumulated depreciation	book value
   1-5	1-5	1-5	1-5