E$8-9($Algo$)$ Computing Depreciation under Alternative Methods LO$8-3$

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 $$28,000.$ The estimated useful life was four years, and the residual value was $$2,560.$ Assume that the estimated productive life of the machine was $10,600$ hours. Actual annual usage was $4,240$ hours in Year $1$; $3,180$ hours in Year $2$; $2,120$ hours in Year $3$; and $1,060$ hours in Year $4.$E$8-9($Algo$)$ Computing Depreciation under Alternative Methods LO$8-3$

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 $$28,000.$ The estimated useful life was four

years, and the residual value was $$2,560.$ Assume that the estimated productive life of the machine was $10,600$ hours. Actual annual

usage was $4,240$ hours in Year $1$; $3,180$ hours in Year $2$; $2,120$ hours in Year $3$; and $1,060$ hours in Year $4.$

Required:

Complete a separate depreciation schedule for each of the alternative methods.

a$.$ Straight$-$line.

b$.$ Units$-$of$-$production.

c$.$ Double$-$declining$-$balance.

Complete this question by entering your answers in the tabs below.

Complete a depreciation schedule using the straight$-$line method.