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E8-8 Computing Depreclation under Alternative Methods LO8-3 Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a
E8-8 Computing Depreclation under Alternative Methods LO8-3 Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,400. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,800 hours in year 1;3,500 hours in year 2; 2,500 hours in year 3 ; and 200 hours in year 4. Requlred: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrylng amount at the end of year 4 is equal to the resldual value. Deprecletlon expense for the last perlod should be calculated as Carrylng value of 3 rd year minus residual value.) 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrylng amount at the end of year 4 is equal to the resldual value. Depreclatlon expense for the last perlod should be coleulated as Carrylng value of 3 rd year minus residual value.) 1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the neorest dollar amount. Make sure that the carrylng amount at the end of year 4 is equal to the residual value. Depreclation expense for the last perlod should be calculated as Carrylng value of 3 rd year minus residual value.)
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