Question
Kindly answer me for both parts correctly. DO NOT POST WRONG ANSWERS PLEASEEEEEEEEEEEEE In recent years, Sheridan Company has purchased three machines. Because of frequent
Kindly answer me for both parts correctly. DO NOT POST WRONG ANSWERS PLEASEEEEEEEEEEEEE
In recent years, Sheridan 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 | |||||
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1 | Jan. 1, 2015 | $133,000 | $45,000 | 8 | Straight-line | |||||
2 | July 1, 2016 | 86,500 | 10,500 | 5 | Declining-balance | |||||
3 | Nov. 1, 2016 | 68,200 | 8,200 | 6 | Units-of-activity |
For the declining-balance method, Sheridan Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2016, 620; 2017, 5,300; and 2018, 6,900.
1. Compute the amount of accumulated depreciation on each machine at December 31, 2018.
MACHINE 1 | MACHINE 2 | MACHINE 3 | ||||
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Accumulated Depreciation at December 31 |
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2. If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017?
2016 | 2017 | |||
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Depreciation Expense |
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