Question

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $14,000. The estimated useful life was four years, and the residual value was $980. Assume that the estimated productive life of the machine was 9,300 hours. Actual annual usage was 3,720 hours in year 1; 2,790 hours in year 2; 1,860 hours in year 3; and 930 hours in year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) a. Straight-line. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition AWN

Answer 1

Answer - (9) Straight line method cost- salvage value depreciation Expensez useful life of years $ 14000 - $980 4 = $3255 per annum Year Depreciation Expense Acumulated depreciation Net Book value $14000 At acquisition $3255 $3255 $10745 $3255 6510 $7490 $3255 9675 $4235 $3255 13020 $980 Exz

by Onits of production cost-salvage value Estimaled production lite Depreciation Expense per unit = $14000 – $980 9300 $ 0.4 per unit 7 Net Book value Year Accumulated deprecation Deprecation Expense $14000 At acquisition $8792 $5208 - $5208 (3720 x 1.4) $9114 # પ્રક૬૮ N $3906 (2.790814) 2604 11.718 $2282 ( 1860 x 1,40 $980 BOL $13020 1930 x 1.4)

c) double-declining balance - X 100 Depreciation rate as per straight Itine methodz geful life = 4x100 251 .: Rate of double declining balance = 2X 250/- z 501 · Depreciation Expense Alcumulated depreciation Net Book value year $14000 At acquisition $7000 $7000 $ 7000 (14000x506) 10500 $3500 3500 (7000 x 50'1-) 12250 $1750 $1750 (3500x 50*1) $770 13020