60.1K

Verified Solution

Link Copied!

Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,400. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,800 hours in year 1; 3,500 hours in year 2; 2,500 hours in year 3; and 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.)

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.)

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.)

2. This part of the question is not part of your Connect assignment.

Answer & Explanation Solved by verified expert

See Answer