cars, Company sed three ma turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and each selected a different method. Infor- mation concerning the machines is summarized below. Machine Acquired Cost 1 1/1/12 2 1/1/13 3 11/1/15 Salvage Useful Life in Years Value $105,000 $5,000 180,000 10,000 125,000 15,000 10 8 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2015, 2,000; 2016, 4,500; and 2017, 5,500. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2015. (b) If Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2013 and (2) 2014?

cars, Company sed three ma turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and each selected a different method. Infor- mation concerning the machines is summarized below. Machine Acquired Cost 1 1/1/12 2 1/1/13 3 11/1/15 Salvage Useful Life in Years Value $105,000 $5,000 180,000 10,000 125,000 15,000 10 8 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2015, 2,000; 2016, 4,500; and 2017, 5,500. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2015. (b) If Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2013 and (2) 2014?

Name: In recent years, Darnell Company purchased three machines. Because of
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Description: In recent years, Darnell Company purchased three machines. Because of heavyturnover in the accounting department, a different accountant was in charge of selectingthe depreciation method for each machine, and each selected a different method. Infor-

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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