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In recent years, Cullumber Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Cullumber 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 Useful Life Depreciation Machine Acquired Value (in years) 10 5 Method Jan. 1, 2015 $134,000 $34,000 July 1,2016 81,000 11,100 Nov. 1, 2016 77,500 8,500 Straight-line Declining-balan Units-of-activity 2 ce 3 For the declining-balance method, Cullumber Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2016, 730; 2017, 5,900; and 2018, 7,600. Your answer is partially correct. Compute the amount of accumulated depreciation on each machine at December 31, 2018. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 $ 40000 $ 16200$ 2 eTextbook and Media Your answer is partially correct. If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017? 2016 2017 Depreciation Expense $ 24300 $ 56700 eTextbook and Media
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