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E8-9 (Algo) Computing Depreciation under Alternative Methods LO8-3 Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat,
E8-9 (Algo) Computing Depreciation under Alternative Methods LO8-3 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 $10,000. The estimated useful life was four years, and the residual value was $900. Assume that the estimated productive life of the machine was 9,100 hours. Actual annual usage was 3,640 hours in Year 1; 2,730 hours in Year 2; 1,820 hours in Year 3; and 910 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 Req 1B Req 1C Complete a depreciation schedule using the Straight-line method. (Do not round intermediate calculations.) Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 Req 1A Req 1B Req 10 Complete a depreciation schedule using the units-of-production method. (Use two decimal places for the per unit output factor. Do not round intermediate calculations.) Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 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 acquisition 1 2 3 4
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