In recent years, Darnell Company purchased three 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 summarized below.

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2014, 2,000; 2015, 4,500; and 2016, 5,500.

Instructions
(a) Compute the amount of accumulated depreciation on each machine at December 31,
2014.
(b) If Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in?
(1) 2012
(2)2013?

Transcribed Image Text:

Salvage Useful Life Depreciation Machine Acuired Cost Value in Years 1/ $105,000 5,000 1/1/12180,000 10,000 11114 125,000 15,000 Method 10 Straight-line Declining-balance Units-of-activity 6