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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
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 $1,000. Assume that the estimated productive life of the machine was 9,000 hours. Actual annual usage was 3,600 hours in year 1; 2,700 hours in year 2; 1,800 hours in year 3; and 900 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.
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b. | Units-of-production (use four decimal places for the per unit output factor). |
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c. | Double-declining-balance. |
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