Subject;: accounting In recent years, Pharoah 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.Machine12(a)3AcquiredJan 1, 2023July 1, 2024Nov 1, 2024Cost$126,50075,00079,200STANAccumulated depreciation atDecember 31SalvageValue$38,50010.100S8,200Useful Life(in years)For the declining-balance method, Pharoah Company uses the double-declining rate. For the units-of-activity method, total machinehours are expected to be 35,500. Actual hours of use in the first 3 years were: 2024, 770: 2025, 6,000, and 2026,7,800.85MACHINE 16Compute the amount of accumulated depreciation on each machine at December 31, 2026.DepreciationMethodStraight-lineDeclining-balanceUnits-of-activityMACHINE 2MACHINE 3

Depreciation is the amount of declining value of an asset over a period of time. It happens due to…

Machine Acquired Jan 1, 2023 July 1, 2024 Nov. 1, 2024 Cost $126,500 75,000 79,200 Salvage Value $38,500 10,100 8,200 Useful Life (in years) 8 5 6 Depreciation Method Straight-line Declining-balance Units-of-activity

Machine Acquired Jan 1, 2023 July 1, 2024 Nov. 1, 2024 Cost $126,500 75,000 79,200 Salvage Value $38,500 10,100 8,200 Useful Life (in years) 8 5 6 Depreciation Method Straight-line Declining-balance Units-of-activity

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

Subject;: accounting

In recent years, Pharoah 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
2
(a)
3
Acquired
Jan 1, 2023
July 1, 2024
Nov 1, 2024
Cost
$126,500
75,000
79,200
STAN
Accumulated depreciation at
December 31
Salvage
Value
$38,500
10.100
S
8,200
Useful Life
(in years)
For the declining-balance method, Pharoah Company uses the double-declining rate. For the units-of-activity method, total machine
hours are expected to be 35,500. Actual hours of use in the first 3 years were: 2024, 770: 2025, 6,000, and 2026,7,800.
8
5
MACHINE 1
6
Compute the amount of accumulated depreciation on each machine at December 31, 2026.
Depreciation
Method
Straight-line
Declining-balance
Units-of-activity
MACHINE 2
MACHINE 3

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