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Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $18,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $18,000. The estimated useful life was four years, and the residual value was $1,840. Assume that the estimated productive life of the machine was 10,100 hours. Actual annual usage was 4,040 hours in year 1; 3,030 hours in year 2; 2,020 hours in year 3; and 1,010 hours in year 4.
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