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In recent years, Skysong Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Skysong 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 $ 95,800 $ 14,000 8 Straight-line 2 July 1, 2021 87,500 10,500 5 Declining-balance 3 Nov. 1, 2021 65,500 7,500 6 Units-of-activity For the declining-balance method, Skysong Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 29,000. Actual hours of use in the first 3 years were 2021, 900; 2022, 4,400; and 2023, 6,400. (a1) Your answer is correct. For Bus #3, calculate depreciable cost per mile under units-of-activity method. Depreciable cost $ 2 per mile Compute the amount of accumulated depreciation on each machine at December 31, 2023. Accumulated depreciation MACHINE 1 MACHINE 2 MACHINE 3 +A A A 40900 62300 23400 If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In 2022? Depreciation expense A (1) 2021 18690 +A (2) 2022 17724
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