Question
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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- Correct Answer
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Your answer is correct.
For Machine #3, calculate depreciable cost per hour under units-of-activity method.
Depreciable cost | $enter depreciable cost per mile in dollars | per hour |
Solution
Attempts: 1 of 1 used
(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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