Question
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 | Acquired | Cost | Salvage Value | Useful Life (in years) | Depreciation Method | |||||
---|---|---|---|---|---|---|---|---|---|---|
1 | Jan. 1, 2020 | $ 95,800 | $ 12,000 | 8 | Straight-line | |||||
2 | July 1, 2021 | 88,000 | 11,500 | 5 | Declining-balance | |||||
3 | Nov. 1, 2021 | 116,000 | 8,000 | 6 | Units-of-activity |
For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 36,000. Actual hours of use in the first 3 years were 2021, 1,000; 2022, 4,000; and 2023, 7,100.
(a1)
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Your answer is correct.
For Machine #3, calculate depreciable cost per hour under units-of-activity method.
Depreciable cost | 3$ depreciable cost per mile in dollars | per hour |
eTextbook and Media
Attempts: 1 of 3 used
(a2)
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Your answer is correct.
Compute the amount of accumulated depreciation on each machine at December 31, 2023.
Accumulated depreciation | ||
---|---|---|
MACHINE 1 | $41900 the amount of accumulated depreciation in dollars | |
MACHINE 2 | $62656 the amount of accumulated depreciation in dollars | |
MACHINE 3 | $36300 the amount of accumulated depreciation in dollars |
eTextbook and Media
Attempts: 2 of 3 used
(b)
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Your answer is partially correct.
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?
(1) 2021 | (2) 2022 | |||
---|---|---|---|---|
Depreciation expense | $26400 depreciation expense in dollars | $?????? depreciation expense in dollars |
all I need is the second part of the last question of 2022? the rest are checked and correct
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