In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge
In recent years, Pharoah 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, 2023 $135,500 $35,500 10 Straight-line 2 July 1, 2024 81,500 10,200 5 Declining-balance 3 Nov. 1, 2024 77,600 7,600 Units-of-activity For the declining-balance method, Pharoah Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 35,000. Actual hours of use in the first 3 years were: 2024, 710; 2025, 5,000; and 2026, 6,400. (a) Compute the amount of accumulated depreciation on each machine at December 31, 2026. Accumulated depreciation at December 31 eTextbook and Media MACHINE 1 MACHINE 2 MACHINE 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To compute the accumulated depreciation for each machine at December 31 2026 well use the specified depreciation methods for each machine Machine 1 St...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started