Latt On Demand purchased a coffee drink machine on January 1, 2024, for $44,000. Expected useful life

Latté On Demand purchased a coffee drink machine on January 1, 2024, for $44,000.
Expected useful life is 10 years or 100,000 drinks. In 2024, 3,000 drinks were sold, and in 2025, 14,000 drinks were sold. Residual value is $4,000.

Requirements

1. Determine the depreciation expense for 2024 and 2025 using the following methods 

a. Straight-line

b. Units-of-production

c. Double-declining-balance 

2. Prepare a schedule that shows annual depreciation expense, accumulated depreciation, and book value for 2024 and 2025 using the following methods.

a. Straight-line

b. Units-of-production

c. Double-declining-balance 3. Assume that Latté On Demand sold the equipment for $27,000 cash on July 1, 2026.
Assume that management has depreciated the equipment by using the double-declining balance method. Record Latté On Demand’s depreciation for 2026 and the sale of the equipment on July 1, 2026.