Question
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $14,000. The estimated useful life
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $14,000. The estimated useful life was four years, and the residual value was $980. Assume that the estimated productive life of the machine was 9,300 hours. Actual annual usage was 3,720 hours in year 1; 2,790 hours in year 2; 1,860 hours in year 3; and 930 hours in year 4. |
Required: | |
1. | Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) |
. | Straight-line
|
year | depreciation expense | accumulated depreciation | net book value |
at acquisition | |||
1 | |||
2 | |||
3 | |||
4 |
Double declining balance
year | depreciation expense | accumulated depreciation | net book value |
at acquisition | |||
1 | |||
2 | |||
3 | |||
4 |
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