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Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $20,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $20,000. The estimated useful life was four years, and the residual value was $2,180. Assume that the estimated productive life of the machine was 9,900 hours. Actual annual usage was 3,960 hours in year 1; 2,970 hours in year 2; 1,980 hours in year 3; and 990 hours in year 4. |
Required: | |
1. | Complete a separate depreciation schedule for each of the alternative methods.(Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) |
a. | Straight-line. |
Year | Depreciation Expense | Accumulated Depreciation | Net Book Value |
At acquisition | $ | ||
1 | $ | $ | |
2 | |||
3 | |||
4 |
b. | Units-of-production (use four decimal places for the per unit output factor). |
Year | Depreciation Expense | Accumulated Depreciation | Net Book Value |
At acquisition | $ | ||
1 | $ | $ | |
2 | |||
3 | |||
4 |
c. | Double-declining-balance. |
Year | Depreciation Expense | Accumulated Depreciation | Net Book Value |
At acquisition | $ | ||
1 | $ | $ | |
2 | |||
3 | |||
4 | |||
|
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