Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,800. The estimated useful
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,800. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,500 hours in year 1; 3,200 hours in year 2: 2,200 hours in year 3; and 1,100 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 3rd year minus residual value.) Depreciation Accumulated Year Expense Depreciation At acquisition 1 2 3 4 Carrying Amount $ 7,800 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.) Year At acquisition Depreciation Accumulated Carrying Expense Depreciation Amount 1 2 3 4 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.) Year At acquisition Depreciation Accumulated Carrying Expense Depreciation Amount 1 2 3 4
Step 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