Question
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
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 $4,600. The estimated useful life was five years, and the residual value was $300. Assume that the estimated productive life of the machine is 13,400 hours. Expected annual production is: year 1, 3,700 hours; year 2, 2,300 hours; year 3, 3,000 hours; year 4, 1,600 hours; and year 5, 2,800 hours. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line
year | depreciation expense | accumulated expense | book value | |
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 |
b. Units-of-production
year | depreciation expense | accumulated expense | book value | |
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 |
c. Double-declining-balance
year | depreciation expense | accumulated expense | book value | |
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started