Purity ice cream company bought a new ice cream maker at


Question - Purity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $10,000. The estimated useful life was four years, and the residual value was $900. Assume that the estimated productive life of the machine was 9,100 hours. Actual annual usage was 3,640 hours in year 1; 2,730 hours in year 2; 1,820 hours in year 3; and 910 hours in year 4.

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

a. Straight-line.

b. Units-of-production (use four decimal places for the per unit output factor).

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