Question 1: Elliott Corp paid $650,000 to purchase equipment and $10,000 to have the equipment delivered to and installed in Elliott Corp's production facilities. Commercial use of the equipment began on May 1, 2018. The estimated residual value of the equipment is $5,000. The equipment is expected to be used a total of 28,000 hours throughout its estimated useful life of 10 years. Elliott Corp's fiscal year ended on October 31, 2018, and they had used the equipment a total of 1,400 hours prior to the year-end. Using the units- of- production method, what amount of depreciation expense would Elliott Corp report for this equipment in the income statement prepared for the year-ended October 31, 2018? (Do not round your depreciation expense per unit!)

Depreciation expense: ???

Question2: Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $1,840. Assume that the estimated productive life of the machine was 10,900 hours. Actual annual usage was 4,360 hours in year 1; 3,270 hours in year 2; 2,180 hours in year 3; and 1,090 hours in year 4.

Required:
1.	Compute the following items (Omit the "$" sign in your responses.):

a. Depreciable Cost: $

b. Straight-Line Depreciation Expense Per Year: $

c. Units-of-Production Depreciation Expense per hour: $

2.	Complete a separate depreciation schedule for each of the alternative methods. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

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			$
1	$	$
2
3
4

rev: 10_07_2011