Question
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
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 | Acquired | Cost | Salvage Value | Useful Life (in years) | Depreciation Method | |||||
---|---|---|---|---|---|---|---|---|---|---|
1 | Jan. 1, 2020 | $130,500 | $30,500 | 10 | Straight-line | |||||
2 | July 1, 2021 | 88,000 | 10,100 | 5 | Declining-balance | |||||
3 | Nov. 1, 2021 | 76,100 | 9,100 | 6 | Units-of-activity |
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.
Compute the amount of accumulated depreciation on each machine at December 31, 2023.
MACHINE 1 | MACHINE 2 | MACHINE 3 | ||||
---|---|---|---|---|---|---|
Accumulated Depreciation at December 31 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
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