Please see below. I need help with this problem. In recent years, Crane 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, 2015 $121,500 $11,500 10 Straight-line 2 July 1, 2016 71,000 12,000 5 Declining-balance 3 Nov. 1, 2016 68,100 8,100 6 Units-of-activity For the declining-balance method, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 710; 2017, 5,900; and 2018, 7,300. Compute the amount of accumulated depreciation on each machine at December 31, 2018. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 $enter a dollar amount $enter a dollar amount $enter a dollar amount If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017? 2016 2017 Depreciation Expense $enter a dollar amount $enter a dollar amount
Please see below. I need help with this problem. In recent years, Crane 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, 2015 $121,500 $11,500 10 Straight-line 2 July 1, 2016 71,000 12,000 5 Declining-balance 3 Nov. 1, 2016 68,100 8,100 6 Units-of-activity For the declining-balance method, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 710; 2017, 5,900; and 2018, 7,300. Compute the amount of accumulated depreciation on each machine at December 31, 2018. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 $enter a dollar amount $enter a dollar amount $enter a dollar amount If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017? 2016 2017 Depreciation Expense $enter a dollar amount $enter a dollar amount
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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Please see below. I need help with this problem.
In recent years, Crane 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, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 710; 2017, 5,900; and 2018, 7,300.
|
Machine
|
Acquired
|
Cost
|
Salvage
Value |
Useful Life
(in years) |
Depreciation
Method |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
|
1
|
Jan. 1, 2015 | $121,500 | $11,500 | 10 | Straight-line | |||||
|
2
|
July 1, 2016 | 71,000 | 12,000 | 5 | Declining-balance | |||||
|
3
|
Nov. 1, 2016 | 68,100 | 8,100 | 6 | Units-of-activity |
For the declining-balance method, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 710; 2017, 5,900; and 2018, 7,300.
Compute the amount of accumulated depreciation on each machine at December 31, 2018.
|
MACHINE 1
|
MACHINE 2
|
MACHINE 3
|
||||
|---|---|---|---|---|---|---|
|
Accumulated Depreciation at December 31
|
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017?
|
2016
|
2017
|
|||
|---|---|---|---|---|
|
Depreciation Expense
|
$enter a dollar amount
|
$enter a dollar amount
|
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