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Tan Sunsetters Inc. purchased a new tanning bed to add to their existing 6 beds. The machine was purchased at the beginning of the year
Tan Sunsetters Inc. purchased a new tanning bed to add to their existing 6 beds. The machine was purchased at the beginning of the year at a cost of $5,000. The estimated useful life of the machine is five years, and the residual value is $1,000. Assume that the estimated productive life of the machine is 15,000 hours. Expected annual production is as follows: Year 1 4,100 hours Year 2 2,500 hours 3,400 hours Year 3 Year 4 1,800 hours Year 5 3,200 hours Required: Complete a depreciation schedule for each of the following methods: a. Straight-line b. Units of Production C. Double-Declining
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