Question
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
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.
| Machine | Acquired | Cost | Salvage Value | Useful Life (in years) | Depreciation Method |
| 1 | Jan. 1, 2012 | $133,000 | $29,000 | 10 | Straight-line |
| 2 | July 1, 2013 | 83,000 | 10,700 | 5 | Declining-balance |
| 3 | Nov. 1, 2013 | 85,500 | 8,000 | 7 | Units-of-activity |
Compute the amount of accumulated depreciation on each machine at December 31, 2015.
Also, if machine 2 was purchased on april 1st instead of july 1, what would be the depreciation expense for this machine in 2013? in 2014?
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Only Auditors Can Save The World Through Peace And Reconciliations
Authors: Marina Peters
1st Edition
B08C47KG6N, 979-8657479355
