Question
Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $28,000. The
Shining Cookie Company, Inc., in Murfreesboro, TN 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 $2,080. Assume that the estimated productive life of the machine was 10,800 hours. Actual annual usage was 4,320 hours in year 1; 3,240 hours in year 2; 2,160 hours in year 3; and 1,080 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.
| |||||||||||||||||||||||||
|
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started