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Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of
Nicole's 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 $4,200. The estimated useful life was five years, and the residual value was $500. Assume that the estimated productive life of the machine is 11,800 hours. Expected annual production is: year 1, 3,300 hours; year 2, 2,100 hours; year 3, 2,600 hours; year 4, 1,400 hours; and year 5, 2,400 hours. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount. Round your final answers to nearest whole dollar amount.) a. Straight-line Year Depreciation Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 b. Units-of-production Year Depreciation Expense Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 c. Double-declining-balance Year Depreciation Expense Accumulated Depreciation Book Value At acquisition 1 2 3 4 5
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