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ACCT 216 Week 5 Homework B
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Suppose the Colorado Avalanche purchased a new Zamboni machine to
scrape the ice off the rink between periods. The Zamboni cost $100,000
and has a useful life of three years and a residual value of $5,000 when it
is sold to a minor league hockey team. The Zamboni is anticipated to dri
ve 352 miles the first year, 375 miles the second year, and 435 miles the
third year when the team anticipates winning the Stanley Cup.
Required:
1.Compute the first years depreciation using the following methods:
a.Straight-line
b.Double-declining balance
c.Units-of-production method.
2.Which method do you think is the most representative of accurate depr
eciation of the Zamboni?
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ACCT 216 Week 6 Homework A
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During August 2013, DB Inc. completed the following transactions: