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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
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 1 (a) 2 3 Acquired Jan. 1, 2023 July 1, 2024 Nov. 1, 2024 Cost Accumulated depreciation at ecember 31 $135,500 eTextbook and Media 81,500 77,600 Salvage Value $35,500 $ 10,200 7,600 Useful Life (in years) 10 MACHINE 1 5 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. 6 Compute the amount of accumulated depreciation on each machine at December 31, 2026. Depreciation Method Straight-line $ Declining-balance Units-of-activity MACHINE 2 $ MACHINE 3
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