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In recent years, Sunland Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Sunland 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 2 3 Acquired Jan. 1, 2023 July 1, 2024 Nov. 1, 2024 Cost $129,500 85,500 76,800 Salvage Value $41,500 10,700 7,800 Useful Life (in years) 8 5 7 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity method, total machine 2004 770.2005 5700- 61.2006 7800 SUPPORT
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