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Yummy Ice Cream Company bought a new ice cream maker at the beginning of a year at a cost of $9,000. The estimated useful life
Yummy Ice Cream Company bought a new ice cream maker at the beginning of a year at a cost of $9,000. The estimated useful life was four years, and the residual (salvage) value was $1,000. Assume that the estimated productive life of the machine was 16,000 total hours. Actual machine hour usage: 5,500 hours in year 1; 3,800 hours in year 2; 3.200 hours in year 3; and 3,500 hours in year 4. Required Compute depreciation expense and accumulated depreciation for the ice cream maker asset for years 1 and 2 only using: a) Straight-line; b) Double-declining balance; and c) Units-of-production
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