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In recent years, Kingbird Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge
In recent years, Kingbird 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 $95,000 $15,000 8 Straight-line 2 July 1, 2021 87,000 11,500 5 Declining-balance 3 Nov. 1, 2021 141,000 9.000 6 Units-of-activity For the declining-balance method, Kingbird Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 44,000. Actual hours of use in the first 3 years were 2021, 600, 2022, 4,800; and 2023,7,900. Your answer is correct. For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $ eTextbook and Media 3 per hour Your answer is correct. Compute the amount of accumulated depreciation on each machine at December 31, 2023. Accumulated depreciation MACHINE 1 $ MACHINE 2 40,000 61.944 MACHINE 3 39.900 If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In 2022? (1) 2021 Depreciation expense $ (2) 2022
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