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In recent years, Pharoah Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Pharoah Corporation 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. For the diminishing-balance method, Pharoah Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 23,090. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,250; and 2025, 5,210. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Machine 2: Diminishing-balance depreciation . : : : Machine 3: Units-of-production depreciation
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