1. In recent years, Hines Company purchased 3 machines. Because of heavy turnover in the accounting department, a differ

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1 In Recent Years Hines Company Purchased 3 Machines Because Of Heavy Turnover In The Accounting Department A Differ 1 (35.35 KiB) Viewed 30 times

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1. In recent years, Hines Company purchased 3 machines. Because of heavy 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. Information concerning the machines is surmarired below. For the declining - balance method, the company whes the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours used in the first year were 2021,2.02.2021, 4.590, and 2023, 6,000. (10 pts. Machine Date of Cost Salvage Useful Depreciation Purchase Value Life in Method Years I 1 1/1/19 $109,000 $ 9,000 10 Straight-line 2 1/1/20 $170,000 S10.000 Declining Balance 3 11/1/21 125.000 $20,000 5 Units of activity Instructions: 1. Compute the amount of accumulated depreciation on each machine at December 31, 2023. Complete each table listed below. Straight-Line Year Total SL Annual Accumulated Ead of Depreciation Rate Depreciation Depreciation Year Book Value S109.000 0 2019 2020 2021 2022 2023

Double Declining Balance Pr Year Beginning Book- Value DLB Rate Annual Depreciation Accumulated Depreciation End of Year Book Value 0 $170,000 2020 2021 2022 2023 Units-of-Activity Year Total Hours Depr. Per Hour Annual Depreciation Accumulated Depreciation End of Year Book Value 0 $125,000 2021 2022 2023

b. Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2020 and 20213 Complete the table. (3 pts.) Declining Balance Year Beginning Book- Value DLB Rate Annual Depreciation Accumulated Depreciation End of Year Book Value $170.000 0 2020 2021 c. As a new accountant hired into the department, can you explain the difference between the three depreciation methods, and why one should be used over another. (1 pt.)