Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 2014 at a cost of $15,500. The estimated useful life was five years, and the residual value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was: year 1, 2,350 hours; year 2, 2,500 hours; year 3, 2,050 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.)

a. Straight-line.
year, depreciation expense, accumulated depreciation, book value

at aquisition

2014

2015

2016

2017

2018

b) Units-of-production.

year, depreciation expense, accumulated depreciation, book value

at aquisition

2014

2015

2016

2017

2018

C) Double-declining balance.

year, depreciation expense, accumulated depreciation, book value

at aquisition

2014

2015

2016

2017

2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions