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The famous Irish singer Carrie OKee is about to embark on her fifth (5th) and...

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Accounting

The famous Irish singer Carrie OKee is about to embark on her fifth (5th) and final farewell tour. Due to popularity this final farewell tour will run for 4 years and range far and wide taking her various locations from Michigans Upper Peninsula to the Canadian Maritimes. In order to determine the price of the concert tickets Miss OKee needs thorough and accurate accounting data. One of her costs will be the costs associated with her tour bus, the MCI XL 5000 (the most luxurious and dependable motor coach in the free world). The coach has a base price of $800,000 and will have another $200,000 of custom features added to it. It is estimated that the bus will have a residual value of $200,000; an estimated life of 4 years or 1,000,000 miles. The tour will cover 300,000 miles in the first year; 200,000 miles the second year; 400,000 miles the third year; and 100,000 in the fourth year. Miss OKee wants you to compute depreciation on the tour bus using the straight-line method, the units-of-production method, and the double declining balance method.

For your convenience, a depreciation table/schedule/grid is provided for your answers.

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