Question
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $10,000. The estimated useful
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $10,000. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 11,500 hours. Actual annual usage was 4,000 hours in year 1; 3,700 hours in year 2; 2,700 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.) Year At acquisition 1 2 3 Depreciation Accumulated Carrying Expense Depreciation Amount 4
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