70.2K

Verified Solution

Link Copied!

Java Jam purchased a coffee drink machine on January 1, 2024. for $33,500. Expected useful life is 5 years or 50,000 drinks. In 2024, 4,000 drinks were sold, and in 2025, 13,000 drinks were sold Residual value is $1,000 Read the requirements as 50 Requirement 1. Determine the depreciation expense for 2024 and 2025 using the following methode () Straight-line (SL), (b) Units of production (UOP) and (c) Double-declining balance (DB) For each method (starting with (a) the straight line method), select the appropriate formula needed to compute annual depreciation and then determine depreciation expense under that method for 2024 and 2025. Round any depreciation expense per unit amounts to the nearest cont and other amounts to the nearest whole dollar) Annual Depreciation Formula 2024 2025 (Cost Residual value). Usou te $ 5,500 $ 6.500 5. JOH Cont - Residual vake) - Useful ife in units) Current year usage $ 2.600 8,450 ODB (Cost Accumulated deprecation) A2 (4Uvodul 1) 5 13.400 8,040 Requirement 2. Prepare a schedule that show annual depreciation expense, accumulated depreciation, and book value tor 2024 and 2025 using the three depreciation methods from Requirement SL a Begin with the viraighine method Bw you como os from Beaven Straight line Annual Depreciation Accumulated Year Depreciation 1.1.2024 12-31-2024 6.500 6.500 12-31-2025 6.500 13.000 Book Value 33.500 27.000 24500 come you ation

Answer & Explanation Solved by verified expert

See Answer