E7-8 (Algo) Computing Depreciation under Alternative Methods LO7-3 Homy 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 3,700 hours in year 1; 3,000 hours in year 2; 2,100 hours in year 3; and 1,200 hours in year4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) At acq uisition 

 

1-b. Complete a separate depreciation schedule by using Units-of?production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) At acquisition 

 

E7-14 (Algo) Recording the Disposal of an Asset and Financial Statement Effects LO7-5 FedEx Corporation is a global leader in express distribution. It has the world's largest fleet of all-cargo aircraft and thousands of vehicles, trailers and electric-powered autonomous delivery robots (bots) and drones to pick up and deliver packages. These bots and drones are used primarily for the "last mile (or kilometre) of delivery" in the most environmentally sustainable and cost-effective way. Assume that FedEx sold some of its robots as part of a modernization process. The bots had been used in the business for three years. The records of the company reflect the following (in millions): Fleet of electric powered, autonomous delivery bots $ 47 Accumulated depreciation 35 Required: 1. Prepare thejournal entry to record the disposal of the fleet of bots and the related transaction effects, assuming that the sales price was (a) $12, (b) $13, or (c) $10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 

 

Journal entry worksheet Record the disposal of the truck assuming that the sales price was $12. Note:
Enter debits before credits. Record entry Clear entry View general journal

 

Journal entry worksheet Record the disposal of the truck assuming that the sales price was $13. Note:
Enter debits before credits. Record entry Clear entry View general journal

 

View transaction list Journal entry worksheet 2 3 Record the disposal of the truck assuming that the
sales price was $10. Note: Enter debits before credits. Transaction General Journal Debit Credit C.
Record entry Clear entry View general journal

1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) ???_ ???_

E7-8 (Algo) Computing Depreciation under Alternative Methods LO7-3 Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,200. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,700 hours in year 1; 3,400 hours in year 2: 2.400 hours in year 3; and 500 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 1 2 3 4