A Starbucks franchisee purchased a coffee drink machine on January 1, 2011, for $44,000. The expected useful life is ten years or 100,000 drinks. In 2010, 3,000 drinks were sold, and in 2011, 14,000 drinks were sold. This volume of drinks were sold in each of the next several years at an equal amount each month. Residual value is $4,000. Prepare a depreciation table and record (journal entries) depreciation for 2012 under the following three depreciation methods:

a. units-of-production

b. double-declining balance

c. straight-line

Answer rating: 100% (QA)

Answer A Calculation unit or Production Cost of equipmen... View the full answer