Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $16,800. The estimated useful life was four years, and the residual value was $1,280. Assume that the estimated productive life of the machine was 9,700 hours. Actual annual usage was 3,880 hours in Year 1; 2,910 hours in Year 2; 1,940 hours in Year 3; and 970 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.

Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $16,800. The estimated useful life was four years, and the residual value was $1,280. Assume that the estimated productive life of the machine was 9,700 hours. Actual annual usage was 3,880 hours in Year 1; 2,910 hours in Year 2; 1,940 hours in Year 3; and 970 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.

Name: Gan E8-9 (Algo) Computing Depreciation under Alternative Methods LO8-3
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Description: Gan E8-9 (Algo) Computing Depreciation under Alternative Methods LO8-3Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit(pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the

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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