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In recent years, Sheridan Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Sheridan 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. Machine Acquired Jan. 1, 2018 July 1, 2019 Nov. 1, 2019 Cost $101,700 77,500 65,829 Residual Useful Life Value (in years) $10,900 9,170 5 5,960 Depreciation Method Straight-line Diminishing-balance Units-of-production NM 6 For the diminishing-balance method, Sheridan Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 26,030. Actual hours of use in the first 3 years were: 2019, 410; 2020, 4,940; and 2021, 5,440. 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 Calculation Depreciation Rate Depreciable Cost Year # of months End of Year Accumulated Carrying Depreciation Amount Depreciation Expense 2018 $ 2019 2020 2021 2022
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