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Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $13,200. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $13,200. The estimated useful life was four years, and the residual value was $980. Assume that the estimated productive life of the machine was 9,400 hours. Actual annual usage was 3,760 hours in year 1; 2,820 hours in year 2; 1,880 hours in year 3; and 940 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. 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 2 3 4
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