Based on the information bellow can someone please help finish the problem in this study guide In recent years, Splish Brothers 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 Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2020 $ 99,100 $ 12,500 8 Straight-line 2 July 1, 2021 91,500 11,000 5 Declining-balance 3 Nov. 1, 2021 101,500 7,500 6 Units-of-activity For the declining-balance method, Splish Brothers Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 47,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,000; and 2023, 8,200. For Bus #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $enter depreciable cost per mile in dollars 2 per hour
Based on the information bellow can someone please help finish the problem in this study guide In recent years, Splish Brothers 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 Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2020 $ 99,100 $ 12,500 8 Straight-line 2 July 1, 2021 91,500 11,000 5 Declining-balance 3 Nov. 1, 2021 101,500 7,500 6 Units-of-activity For the declining-balance method, Splish Brothers Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 47,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,000; and 2023, 8,200. For Bus #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $enter depreciable cost per mile in dollars 2 per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Based on the information bellow can someone please help finish the problem in this study guide
In recent years, Splish Brothers 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.
For the declining-balance method, Splish Brothers Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 47,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,000; and 2023, 8,200.
|
Machine
|
Acquired
|
Cost
|
Salvage
Value |
Useful Life
(in years) |
Depreciation
Method |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
|
1
|
Jan. 1, 2020
|
$ 99,100 | $ 12,500 | 8 | Straight-line | |||||
|
2
|
July 1, 2021
|
91,500 | 11,000 | 5 | Declining-balance | |||||
|
3
|
Nov. 1, 2021
|
101,500 | 7,500 | 6 | Units-of-activity |
For the declining-balance method, Splish Brothers Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 47,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,000; and 2023, 8,200.
For Bus #3, calculate depreciable cost per hour under units-of-activity method.
| Depreciable cost | $enter depreciable cost per mile in dollars 2 | per hour |
Transcribed Image Text:### Accumulated Depreciation Calculation
**Task:** Compute the amount of accumulated depreciation on each machine as of December 31, 2023.
#### Table: Accumulated Depreciation
| Machine | Accumulated Depreciation |
|------------|--------------------------|
| MACHINE 1 | $ |
| MACHINE 2 | $ |
| MACHINE 3 | $ |
This table presents three machines for which the accumulated depreciation values need to be calculated and entered. Each machine has a corresponding space to fill in the computed depreciation amount.
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