In recent years, Wildhorse Company has purchased three machines. Because of frequent employee turnover in the accountingdepartment, a different accountant was in charge of selecting the depreciation method for each machine, and various methods havebeen used. Information concerning the machines is summarized in the table below.Machine1(a1)23AcquiredJan. 1, 2020July 1, 2021Nov. 1, 2021Cost$ 96,200Your answer is correct.Depreciable cost $88,50090,500SalvageValue$ 12,00010,5008,500Useful Life(in years)8256For the declining-balance method, Wildhorse Company uses the double-declining rate. For the units-of-activity method, total machinehours are expected to be 41,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,500; and 2023, 7,600.DepreciationMethodStraight-lineFor Machine #3, calculate depreciable cost per hour under units-of-activity method.per hourDeclining-balanceUnits-of-activity (b)eTextbook and MediaSolutionYour answer is incorrect.If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In2022?Depreciation expense $(1)2021$Attempts: 4 of 4 used(2)2022

Machine #3 Depreciation cost per unit = (Cost of machine - salvage value) / Activity hour…

Answered: April 1 instead of July 1, what would…

Business

Accounting

April 1 instead of July 1, what would be the depreciation exper

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In recent years, Wildhorse Company has purchased three machines. Because of frequent employee turnover in the accounting
department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have
been used. Information concerning the machines is summarized in the table below.
Machine
1
(a1)
2
3
Acquired
Jan. 1, 2020
July 1, 2021
Nov. 1, 2021
Cost
$ 96,200
Your answer is correct.
Depreciable cost $
88,500
90,500
Salvage
Value
$ 12,000
10,500
8,500
Useful Life
(in years)
8
2
5
6
For the declining-balance method, Wildhorse Company uses the double-declining rate. For the units-of-activity method, total machine
hours are expected to be 41,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,500; and 2023, 7,600.
Depreciation
Method
Straight-line
For Machine #3, calculate depreciable cost per hour under units-of-activity method.
per hour
Declining-balance
Units-of-activity

(b)
eTextbook and Media
Solution
Your answer is incorrect.
If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In
2022?
Depreciation expense $
(1)
2021
$
Attempts: 4 of 4 used
(2)
2022

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