Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Machine 1, machine 2 & machine 3 In recent years, Sandhill Corporation has purchased three machines. Because of frequent employee turnover in the accounting department,

image text in transcribed
Machine 1, machine 2 & machine 3
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In recent years, Sandhill Corporation 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 Residual Value Cost Useful Life (in years) 1 Acquired Jan. 1. 2018 July 1, 2019 $13,000 5 $90,700 85,000 Depreciation Method Straight-line Diminishing-balance Units-of-production 2 9,490 5 3 Nov. 1, 2019 64.703 6,140 6 For the diminishing-balance method, Sandhill Corporation uses double the straight-line rate. For the units-of- production method, total machine hours are expected to be 21,690. Actual hours of use in the first 3 years were: 2019, 440; 2020, 4,200; and 2021, 4610. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter o for amounts.) Machine 1: Straight-line depreciation Depreciable Amount Calculation Depreciation Rate # of months Depreciati Expense Year 2018 $ % de $ 2019 % 2020 % 2021 % 2022 % Machine 2. Diminishing-halance denreriation Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Machine 1: Straight-line depreciation End of Year of onths Depreciation Expense Accumulated Depreciation Carrying Amount $ $ $ Machine 2: Diminishing-balance depreciation Calculation Depreciation Rate Carrying Amount Beg. of Year # of Depreciati Expense Year months 2019 $ % $ 2020 % 2021 % 2022 % 2023 % Machine 2: Diminishing-balance depreciation End of Year tof Depreciation Expense Accumulated Depreciation Carrying Amount onths $ $ Machine 3: Units-of-production depreciation Units-of- Production Calculation Depreciation Cost/Unit Depreciation Expense Year 2019 $ $ 2020 2021

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

Step: 3

blur-text-image

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

Accounting Information For Decisions

Authors: Robert Ingram, Thomas L. Albright, Bruce A. Baldwin, John Hill

1st Edition

0538815388, 978-0538815383

More Books

Students also viewed these Accounting questions

Question

Be able to differentiate between arbitration and mediation

Answered: 1 week ago

Question

Understand how arbitrators are credentialed and selected

Answered: 1 week ago

Question

Appreciate the advantages of arbitration

Answered: 1 week ago