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I need help with the calculations please. How do I find the starting value to calculate accumulated depreciation? Problem 9-7A 5/20/16, 10:26 PM Print by:
I need help with the calculations please. How do I find the starting value to calculate accumulated depreciation?
Problem 9-7A 5/20/16, 10:26 PM Print by: CAMILA HUI CHEN WU ACC/291 - 50058166 / Assignment: Week 3 Assignment *Problem 9-7A In recent years, Farr 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. Salvage Value Cost Useful Life (in years) Depreciation Method 10 Straight-line 10,500 5 Declining-balance 7,160 6 Units-of-activity Machine Acquired 1 Jan. 1, 2012 $127,000 $19,000 2 July 1, 2013 79,000 3 Nov. 1, 2013 81,560 For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were: 2013, 880; 2014, 6,100; and 2015, 7,550. Compute the amount of accumulated depreciation on each machine at December 31, 2015. MACHINE 1 MACHINE 2 $ Accumulated Depreciation at December 31 MACHINE 3 $ $ If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014? 2013 Depreciation Expense $ 2014 $ Question Attempts: 0 of 3 used Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni Page 1 of 1Step by Step Solution
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