In recent years, Sunland 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. Salvage Value Useful Life Depreciation Method Machine Acquired Cost (in years) Jan. 1, 2020 $125,000 $37,000 8. Straight-line July 1, 2021 77,000 10,600 Declining-balance Nov. 1, 2021 77,100 8,100 Units-of-activity For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2021, 840; 2022, 3,800; and 2023, 5,500. (a) Your answer is partially correct. Try again. Compute the amount of accumulated depreciation on each machine at December 31, 2023. MACHINE 1 МАСHINE 2 MACHINE 3 Accumulated Depreciation at December 31 %24 44,000 %$4 39,102 20,280 $4 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 2 used (b) X Your answer is incorrect. Try again. 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? 2021 2022 Depreciation Expense 1680 7600
In recent years, Sunland 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. Salvage Value Useful Life Depreciation Method Machine Acquired Cost (in years) Jan. 1, 2020 $125,000 $37,000 8. Straight-line July 1, 2021 77,000 10,600 Declining-balance Nov. 1, 2021 77,100 8,100 Units-of-activity For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2021, 840; 2022, 3,800; and 2023, 5,500. (a) Your answer is partially correct. Try again. Compute the amount of accumulated depreciation on each machine at December 31, 2023. MACHINE 1 МАСHINE 2 MACHINE 3 Accumulated Depreciation at December 31 %24 44,000 %$4 39,102 20,280 $4 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 2 used (b) X Your answer is incorrect. Try again. 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? 2021 2022 Depreciation Expense 1680 7600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Topic Video
Question
Transcribed Image Text:In recent years, Sunland 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.
Salvage
Value
Depreciation
Method
Useful Life
Machine
Acquired
Cost
(in years)
Jan. 1, 2020
$125,000
$37,000
8.
Straight-line
2.
July 1, 2021
77,000
10,600
Declining-balance
Nov. 1, 2021
77,100
8,100
Units-of-activity
For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity
method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were:
2021, 840; 2022, 3,800; and 2023, 5,500.
(a)
Your answer is partially correct. Try again.
Compute the amount of accumulated depreciation on each machine at December 31, 2023.
MACHINE 1
MACHINE 2
MACHINE 3
Accumulated Depreciation at December 31
44,000
39,102
20,280
Click if you would like to Show Work for this question: Open Show Work
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT
Attempts: 2 of 2 used
v (b)
Your answer is incorrect. Try again.
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?
2021
2022
Depreciation Expense
1680
7600
ere to search
%24
%24
%24
3.
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