If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2026? In 2027? In recent years, Pharoah Corporation has purchased three machines. Because of frequent employee turnover in theaccounting 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.Machine1AcquiredJan. 1, 2025CostResidualValueUseful Life(in years)Depreciation Method$100,600$12,1005Straight-line2July 1, 202683,75010,5205Diminishing-balance3Nov. 1, 202660,9565,5406Units-of-productionFor the diminishing-balance method, Pharoah Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 23,090. Actual hours of use in the first 3 years were: 2026,380; 2027,4,250; and 2028, 5,210.

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Description: If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2026? In 2027? In recent years, Pharoah Corporation has purchased three machines. Because of frequent employee turnover in theaccoun

Depreciation is the decrement in the value of tangible assets by the wear and tear during the…

Business

Accounting

In recent years, Pharoah Corporation 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. Residual Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 Jan. 1, 2025 $100,600 $12,100 5 Straight-line 2 July 1, 2026 83,750 10,520 5 Diminishing-balance 3 Nov. 1, 2026 60,956 5,540 6 Units-of-production For the diminishing-balance method, Pharoah Corporation uses double the straight-line rate. For the units-of- production method, total machine hours are expected to be 23,090. Actual hours of use in the first 3 years were: 2026, 380; 2027, 4,250; and 2028, 5,210.

In recent years, Pharoah Corporation 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. Residual Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 Jan. 1, 2025 $100,600 $12,100 5 Straight-line 2 July 1, 2026 83,750 10,520 5 Diminishing-balance 3 Nov. 1, 2026 60,956 5,540 6 Units-of-production For the diminishing-balance method, Pharoah Corporation uses double the straight-line rate. For the units-of- production method, total machine hours are expected to be 23,090. Actual hours of use in the first 3 years were: 2026, 380; 2027, 4,250; and 2028, 5,210.

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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