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Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $30,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $30,000. The estimated useful life was four years, and the residual value was $2,180. Assume that the estimated productive life of the machine was 10,700 hours. Actual annual usage was 4,280 hours in year 1; 3,210 hours in year 2; 2,140 hours in year 3; and 1,070 hours in year 4. |
Required: | |
1. | Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) |
a. | Straight-line. (Use Table below ) |
b. | Units-of-production (use four decimal places for the per unit output factor).(Use Table Below) |
c. | Double-declining-balance. (Use the Table, 3 sperate times, 1 for each question) |
Year | Depriciation | Accumulated depreciation | Net Book Value |
---|---|---|---|
At Acquisition | |||
1 | |||
2 | |||
3 | |||
4 |
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