3: Access Inc. is in operation from last 8 years, and have a balance of $640,000 in the machinery account as at Jan 01, 2000. the remaning life of this machinery is 7 years and had a salvage value of 63000. On August 01, 2000, the Company made additions to the machinery a/c of $98,000. The machinery is expected to produce a total of 200,000 units. The machinery was used in the production in the following manner:

Year Production

2000 13,400

2001 34,200

2002 38,400

2003 39,100

2004 31,900

2005 28,060

2006 14,940

There was another addition to the machineries for $126,000 on Jan 01, 2002. The useful life of the asset is 9 years and it can realize $13,400 at the end of 9 years. On Jan 01, 2006, the company reassessed the useful life of this machiney to be 11 years, while the salvage value remained the same.

On Oct 01, 2005, the company bought an equipemt, which was expected to be used a total of 46,000 machine hours (MH) The equipment was used as per the below mentioned schedule:

2005 $ 1,730

2006 $ 4,200

2007 $ 3,100

2008 $ 4,600

2009 $ 5,900

2010 $ 7,070

At the end of 2010, the company assessed that its original estimation was wrong and the equipment is expected to work only 12,000 more machine hours. During 2011, the equipment was used for 4,800MH, 2012 5,300MH, and rest of the hours were used in 2013.

Prepared a schedule of the machinery and equipment account together.

Show your working notes properly.

Hint: For presentation purpose, you can give numbering to the machinese,