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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 $800. Assume that the estimated productive life of the machine was 11,500 hours. Actual annual usage was 3,900 hours in year 1; 3,600 hours in year 2; 2,600 hours in year 3; and 1,400 hours in year 4.
Required -
1-a. Complete a separate depreciation schedule by using Straight-line method.
1-b. Complete a separate depreciation schedule by using Units-of-production method.
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