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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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
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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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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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