Question
In recent years, Sheridan Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Sheridan 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, 2020 | $ 95,500 | $ 13,500 | 8 | Straight-line | |||||
2 | July 1, 2021 | 87,500 | 11,500 | 5 | Declining-balance | |||||
3 | Nov. 1, 2021 | 98,000 | 8,000 | 6 | Units-of-activity |
For the declining-balance method, Sheridan 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 2021, 1,000; 2022, 4,500; and 2023, 6,500.In recent years, Sheridan 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, 2020 | $ 95,500 | $ 13,500 | 8 | Straight-line | |||||
2 | July 1, 2021 | 87,500 | 11,500 | 5 | Declining-balance | |||||
3 | Nov. 1, 2021 | 98,000 | 8,000 | 6 | Units-of-activity |
For the declining-balance method, Sheridan 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 2021, 1,000; 2022, 4,500; and 2023, 6,500.
compute the amount of accumulated depreciation on each machine at December 31,2023
MACHINE 1 $
MACHINE 2 $
MACHINE 3 $
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