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Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $28,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $2,560. Assume that the estimated productive life of the machine was 10,600 hours. Actual annual usage was 4,240 hours in year 1; 3,180 hours in year 2: 2,120 hours in year 3; and 1,060 hours in year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. (DO not round intermediate calculations.) b.Units-of-production (use four decimal places for the per unit output factor). Year Depreciation Expense Accumulated Depreciation Net Book Value $ 28,000 At acquisition 1 $ 2 $ 4,240 3,180 2,120 1,060 3 $ 4 $ c.Double-declining balance. Year At acquisition Depreciation Expense Accumulated Depreciation Net Book Value $ 28,000 1 2 3 4
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