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HI please help with 1b, thank you Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a
HI please help with 1b, thank you
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,000. The estimated useful life vas four years, and the residual value was $900. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,600 hours in year 1;3,300 hours in year 2;2,300 hours in year 3 ; and 800 hours in year 4 . Required: -a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3 rd year minus residual value.) -b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.)
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