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please solve the Units-of-production depreciation In recent years, Oriole Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different
please solve the Units-of-production depreciation
In recent years, Oriole 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 Useful Life (in years) 1 Cost $91,000 86,250 $12,700 Acquired Jan 1, 2022 July 1, 2023 Nov. 1, 2023 5 Depreciation Method Straight-line Diminishing-balance Units-of-production 2 9.250 5 3 58,287 6,330 6 For the diminishing balance method, Oriole Corporation uses double the straight-line rate. For the units of production method, total machine hours are expected to be 22,590. Actual hours of use in the first 3 years were: 2023,420,2024.4 370; and 2025,4,950. Machine 3: Units-of-production depreciation Calculation En Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 420 945 2240 2240 2024 4370 2.11 23311 25551 2025 4950 4.08 26405 51956 Machine 3: Units-of-production depreciation End of Year Calculation Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Carrying Amount 5 945 $ 2240 2240 4370 2.11 23311 25551 4950 4,08 26405 51956 Step by Step Solution
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