2. Gordon Dining Services recently purchased an autonomous food delivery robot to meet
increased demand.
Cost of robot
$500,000
Estimated useful life
5 years
Estimated salvage value
$50,000
Productive life in hours
30,000 hours
a. Gordon Dining decides to use the activity method to compute its depreciation for the
current year. If Gordon Dining Services uses the delivery bot for 4,000 hours in the first year,
how would you compute its depreciation expense?
b. Gordon Dining decides to use the straight-line method to compute its depreciation for the
current year. How would you compute its depreciation expense in the first year?