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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 | $132,000 | $35,700 | 9 | Straight-line |
2 | July 1, 2013 | 75,000 | 11,500 | 5 | Declining-balance |
3 | Nov. 1, 2013 | 104,540 | 8,840 | 6 | Units-of-activity |
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