Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $13,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,300 hours; year 2, 2,450 hours; year 3, 2,150 hours; year 4, 2,100 hours; and year 5, 1,000 hours.
Required: 1. Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) a. Straight-line. Depreciation Accumulated Book value Year Depreciation Expense At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 b. Units-of-production. Depreciation Accumulated Book value Year Expense Depreciation At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 c. Double-declining-balance. Depreciation Accumulated Book Value Expense Depreciation Year At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5Step 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