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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 Acquired Jan 1, 2015 July 1, 2016 Nov. 1, 2016 Cost $135,500 81,500 77,600 Salvage Value $35,500 10,200 7,600 Useful Life (in years) 10 5 6 Depreciation Method Straight-line Declining-balance Units-of-activity 2 3 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: 2016, 710; 2017, 5,000, and 2018,6,400. 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 2016 2017 Depreciation Expense $
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