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Please Show all work for part B :) Problem 9-08A (Part Level Submission) In recent years, Cullumber Company has purchased three machines. Because of frequent
Please Show all work for part B :)
Problem 9-08A (Part Level Submission) In recent years, Cullumber 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. Depreciation Method Useful Life (In years) Salvage Value Acquired Cost Machine Straight-line 10 $34,000 $134,000 Jan. 1, 2020 1 Declining-balance 11,100 5 81,000 July 1, 2021 2 Units-of-activity 8,500 6 77,500 Nov. 1, 2021 3 For the declining-balance method, Cullumber Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2021, 730: 2022, 5,900; and 2023, 7,600. (a) Your answer is correct. Compute the amount of accumulated depreciation on each machine at December 31, 2023. MACHINE 3 MACHINE 2 MACHINE 1 28460 57672 40000 Accumulated Depreciation at December 31 (b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In 2022? 2022 2021 Depreciation ExpenseStep by Step Solution
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