E8-8 Computing Depreciation under Alternative Methods

E8-8 Computing Depreciation under Alternative Methods LO8-3 Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,000. The estimated useful life was four years, and the residual value was $900. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,600 hours in year 1: 3,300 hours in year 2:2,300 hours in year 3, and 800 hours in year 4 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the near amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expens period should be calculated as Carrying value of 3rd year minus residual value.) Year Depreciation Expense Accumulated Depreciation At acquisition 1 2 3 Carrying Amount $ 8,000 5.444 2.556 $ 1.252 2.556 3,808 4 7100 900 1-c. Complete a separate depreciation schedule by using Double-declining balance method (Round your answers to the dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation exp