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A explanation for this would be great. In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the accounting department,
A explanation for this would be great.
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 1 2 3 Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Cost $130,500 88,000 76,100 Salvage Value $30,500 10,100 9,100 Useful Life (in years) 10 5 Depreciation Method Straight-line Declining-balance Units-of-activity 6 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 $ | $ $ $Step by Step Solution
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