Question
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
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