d Year 2011 2012 Method A Latt On Demand purchased a coffee drink machine on January...

  

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d Year 2011 2012 Method A Latté On Demand purchased a coffee drink machine on January 1, 2011, for $44,000. Expected useful life is 10 years or 100,000 drinks. In 2011, 3,000 drinks were sold and in 2012, 14,000 drinks were sold. Residual value is $4,000. Under three depreciation methods, annual depreciation and total accumulated depreciation at the end of 2011 and 2012 are as follows Method B Annual Depreciation Accumulated Depreciation Expense $1,200 $1,200 5,600 6,800 Annual Depreciation Expense $8,800 7,040 Accumulated Depreciation $ 8,800 15,840 Method C Annual Depreciation Expense $4,000 4,000 Requirements 1. Identify the depreciation method used in each instance, and show the equation and computation for each method. (Round to the nearest dollar) 2. Assume use of the same method through 2013. Compute depreciation expense, accumulated depreciation, and net book value for 2011-2013 under each method, assuming 12,000 drinks were sold in 2013. Accumulated Depreciation $4,000 8,000 d Year 2011 2012 Method A Latté On Demand purchased a coffee drink machine on January 1, 2011, for $44,000. Expected useful life is 10 years or 100,000 drinks. In 2011, 3,000 drinks were sold and in 2012, 14,000 drinks were sold. Residual value is $4,000. Under three depreciation methods, annual depreciation and total accumulated depreciation at the end of 2011 and 2012 are as follows Method B Annual Depreciation Accumulated Depreciation Expense $1,200 $1,200 5,600 6,800 Annual Depreciation Expense $8,800 7,040 Accumulated Depreciation $ 8,800 15,840 Method C Annual Depreciation Expense $4,000 4,000 Requirements 1. Identify the depreciation method used in each instance, and show the equation and computation for each method. (Round to the nearest dollar) 2. Assume use of the same method through 2013. Compute depreciation expense, accumulated depreciation, and net book value for 2011-2013 under each method, assuming 12,000 drinks were sold in 2013. Accumulated Depreciation $4,000 8,000

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Method A Straightline depreciation method Annual depreciation expense Cost Residual Value Useful lif... View the full answer