In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the accounting dep
Posted: Sat Feb 19, 2022 2:33 pm
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, 2020 $130,500 $30,500 10
Straight-line 2 July 1, 2021 88,000 10,100 5 Declining-balance 3
Nov. 1, 2021 76,100 9,100 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 33,500. Actual hours of use in the first 3 years
were: 2021, 660; 2022, 5,700; and 2023, 7,300. (a) Compute the
amount of accumulated depreciation on each machine at December 31,
2023. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at
December 31 $enter a dollar amount $enter a dollar amount $enter a
dollar amount
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, 2020 $130,500 $30,500 10
Straight-line 2 July 1, 2021 88,000 10,100 5 Declining-balance 3
Nov. 1, 2021 76,100 9,100 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 33,500. Actual hours of use in the first 3 years
were: 2021, 660; 2022, 5,700; and 2023, 7,300. (a) Compute the
amount of accumulated depreciation on each machine at December 31,
2023. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at
December 31 $enter a dollar amount $enter a dollar amount $enter a
dollar amount