Question
Listed below is information for each of the three machines at Stark Enterprises. Adjustments are recorded yearly. Assume a September 30th year end. Machine Acquired
Listed below is information for each of the three machines at Stark Enterprises. Adjustments are recorded yearly. Assume a September 30th year end. Machine Acquired Useful Life Cost Residual Value (in years) Depreciation Method 1 March 1, 2018 102000 10000 5 Double Diminishing Balance 2 May 31, 2019 85000 5000 41 Units of Production 3 June 1, 2020 40000 4000 4 Straight Line For the units of production method, total machine hours are 20,000. Actual hours of use in the first 2 years were 1.700 hours in 2019 and 4,800 hours in 2020. Required: 1. Calculate the accumulated depreciation and carrying amount on each machine for September 30, 2020. Round the calculations and your answer to the nearest dollar. Place your answer in the table below: Accumulated Depreciation Carrying Amount Machine 1 Machine 2 Machine 3 2. Assume Machine 1 was sold on Feb. 1, 2021 for $25,000. What is the gain/loss from this sale? Round the calculations and your answer to the nearest dollar. Use brackets to indicate a negative number. Do not write gain or loss in your response
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