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In recent years, Oriole Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Oriole 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 conceming the machines is summarized in the table below Salvage Value Useful Life (in years) Machine Method Acquired Jan. 1, 2015 July 1, 2016 Nov. 1, 2016 Cost $129,000 76,000 66,100 Straight-line Declining-balance Units-of-activity $41,000 11,600 6,100 For the dedining-balance method, Oriole Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 610; 2017, 5,600; and 2018, 7,300 Compute the amount of accumulated depreciation on each machine at December 31, 2018 MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 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? 2017 2016 Depreciation Expense Click if you would like to show work for this question: Open Show work
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