E8 8 Computing Depreciation Under Alternative Methods Lo8 3 Purity Ice Cream Company Bought A New Ice Cream Maker At The 1 (46.07 KiB) Viewed 35 times
E8 8 Computing Depreciation Under Alternative Methods Lo8 3 Purity Ice Cream Company Bought A New Ice Cream Maker At The 2 (22.01 KiB) Viewed 35 times
E8-8 Computing Depreciation under Alternative Methods LO8-3 Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,000. The estimated useful life was four years, and the residual value was $900. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,700 hours in year 1: 3,000 hours in year 2, 2.100 hours in year 3; and 1,200 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Year At acquisition 1 2 3 4 Year At acquisition 1 2 Depreciation Expense 3 4 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Accumulated Depreciation Depreciation Expense Carrying Amount Accumulated Depreciation Carrying Amount
1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Year At acquisition 1 2 4 Depreciation Expense Accumulated Depreciation Carrying Amount D
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