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A company purchased three machines during 2020, Machine No. 1 was placed into service on September 15, 2020, and was depreciated on a units of

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A company purchased three machines during 2020, Machine No. 1 was placed into service on September 15, 2020, and was depreciated on a units of production activity basis. It cost $12.200, and it was estimated that it would produce 50,000 units of product during its 5 year life, after which it would have a $2.200 residual value. It produced 3,000 units during 2020 and 11.500 during 2021. Machines 2 & 3 were purchased from a bankrupt firm at auction for $7.850 and 510,000, respectively. They were both placed into service on June 30 of 2020. Additional information about those machines follows. Estimated Machine Residual Value Depreciation method Life 2 $ 500 6 years Sum of years digits 3 800 10 years Double declining bal Required Complete the following matrix assuming a calendar year end. The Company calculates depreciation to the nearest month. Show clearly labelled computations below for partial credit A company purchased three machines during 2020, Machine No. 1 was placed into service on September 15, 2020, and was depreciated on a units of production activity basis. It cost $12.200, and it was estimated that it would produce 50,000 units of product during its 5 year life, after which it would have a $2.200 residual value. It produced 3,000 units during 2020 and 11.500 during 2021. Machines 2 & 3 were purchased from a bankrupt firm at auction for $7.850 and 510,000, respectively. They were both placed into service on June 30 of 2020. Additional information about those machines follows. Estimated Machine Residual Value Depreciation method Life 2 $ 500 6 years Sum of years digits 3 800 10 years Double declining bal Required Complete the following matrix assuming a calendar year end. The Company calculates depreciation to the nearest month. Show clearly labelled computations below for partial credit

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