*P9-8A In recent years, Jayme 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. Salvage Useful Life Machine Acquired Cost Value (in years) Depreciation Method Jan. 1, 2015 $96,000 $12,000 8 Straight-line July 1, 2016 85,000 10,000 5 Declining-balance Nov. 1, 2016 66,000 6,000 Units-of-activity au For the declining-balance method, Jayme 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, 800; 2017, 4,500; and 2018, 6,000. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2018. (b) If machine 2 was purchased on April 1 instead of July 1, what would be the deprecia- tion expense for this machine in 2016? In 2017? Machine 1 Machine 2 Double the Straight-Line Percentage 100/Useful Life = Straight Line Percentage x 2 = Double Straight-Line Percentage Year Book Value x Dep Beginning Rate of Year = Annual Depreciation Expense Accumulated Book Value Depreciation 2016 2017 2018 Machine 3 Cost - Salvage Value / Total number of units - Depreciation per unit Depreciation per unit x number of units used = Annual Depreciation Year Computation Units of Depreciation Activity X Cost/Unit = Annual Accumulated Depreciation Depreciation Expense 2016 2017 2018 Problem 9-8A (Continued) Year Book Value x Dep Beginning Rate = Annual Depreciation Expense Accumulated Book Value Depreciation of Year 2016 2017