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please see attachment Problem 9-7A In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different

please see attachment

Problem 9-7A In recent years, Farr 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
1Jan. 1, 2012$134,000$27,00010Straight-line
2July 1, 201386,00010,6005Declining-balance
3Nov. 1, 2013105,7906,7907Units-of-activity
For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be33,000. Actual hours of use in the first 3 years were: 2013,720; 2014,5,110; and 2015,6,590.
Compute the amount of accumulated depreciation on each machine at December 31, 2015.
MACHINE 1 MACHINE 2 MACHINE 3
Accumulated Depreciation at December 31 $ $ $
LINK TO TEXT LINK TO TEXT

If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014?

2013 2014
Depreciation Expense $ $

image text in transcribed 3/22/2016 Problem 9-7A Problem 9-7A In recent years, Farr 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 Value Cost Useful Life (in years) Machine Acquired 1 Jan. 1, 2012 $134,000 $27,000 2 3 July 1, 2013 Nov. 1, 2013 86,000 105,790 10,600 6,790 Depreciation Method 10 Straight-line 5 7 Declining-balance Units-of-activity For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 33,000. Actual hours of use in the first 3 years were: 2013, 720; 2014, 5,110; and 2015, 6,590. Compute the amount of accumulated depreciation on each machine at December 31, 2015. MACHINE 1 Accumulated Depreciation at December 31 LINK TO TEXT $ MACHINE 2 $ MACHINE 3 $ LINK TO TEXT If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014? 2013 Depreciation Expense $ 2014 $ LINK TO TEXT Question Attempts: 0 of 3 used SA VE FOR LA TER SUBMIT A NSWER C opyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/student/main.uni 1/2 3/22/2016 http://edugen.wiley.com/edugen/student/main.uni Problem 9-7A 2/2

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