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In recent years, Blue Spruce Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge

In recent years, Blue Spruce 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

Acquired

Cost

Salvage Value

Useful Life (in years)

Depreciation Method

1

Jan. 1, 2020

$ 96,800 $ 13,000 8 Straight-line

2

July 1, 2021

88,500 12,000 5 Declining-balance

3

Nov. 1, 2021

98,000 8,000 6 Units-of-activity

For the declining-balance method, Blue Spruce Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 45,000. Actual hours of use in the first 3 years were 2021, 700; 2022, 4,900; and 2023, 8,000.

(a1)

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For Machine #3, calculate depreciable cost per hour under units-of-activity method.

Depreciable cost $enter depreciable cost per mile in dollars per hour

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(a2)

Compute the amount of accumulated depreciation on each machine at December 31, 2023.

Accumulated depreciation

MACHINE 1

$enter the amount of accumulated depreciation in dollars

MACHINE 2

$enter the amount of accumulated depreciation in dollars

MACHINE 3

$enter the amount of accumulated depreciation in dollars

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