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please complete all requirement . Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of
please complete all requirement .
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,200. The estimated useful life was four years, and the residual value was $600. Assume that the estimated productive life of the machine was 12,000 hours. Actual annual usage was 4,100 hours in year 1;3,800 hours in year 2;2,800 hours in year 3 ; and 1,300 hours in year 4 . Required: 1-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.) 1-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.) 1-c. Complete a separate depreciation schedule by using Double-declining-balance 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.)Step by Step Solution
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1a StraightLine Method In the straightline method the depreciation expense is calculated as follows textDepreciation Expense fractextCost textResidual ...Get Instant Access to Expert-Tailored Solutions
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