Question
In recent years, Wildhorse Co. has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Wildhorse Co. 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, 2015 $123,000 $23,000 10 Straight-line 2 July 1, 2016 92,500 11,400 5 Declining-balance 3 Nov. 1, 2016 75,700 6,700 6 Units-of-activity For the declining-balance method, Wildhorse Co. uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2016, 850; 2017, 6,200; and 2018, 7,900. Collapse question part (a) Compute the amount of accumulated depreciation on each machine at December 31, 2018. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 $ $ $
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