Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,800. 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; 3,400 hours in year 2; 2,400 hours in year 3; and 500 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 Depreciation Expense Accumulated Depreciation $ Carrying Amount 8,800
Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,800. 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; 3,400 hours in year 2; 2,400 hours in year 3; and 500 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 Depreciation Expense Accumulated Depreciation $ Carrying Amount 8,800
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 4RE: Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000...
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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 $2,560. Assume that the estimated productive life of the machine was 10,600 hours. Actual annual usage was 4,240 hours in year 1; 3,180 hours in year 2; 2,120 hours in year 3; and 1,060 hours in year 4. How do I calculate the year 4 double -declining balance |
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