Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Correct answer icon

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)

Correct answer icon

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)

Partially correct answer icon

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

3rd Edition

0136946690, 978-0136946694

More Books

Students also viewed these Accounting questions

Question

2. Write the introduction section of a paper.

Answered: 1 week ago