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Problem 9-8A In recent years, Sandhill Co. has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in
Problem 9-8A In recent years, Sandhill Co. 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 Useful Life (in years) 10 Depreciation Method Machine Acquired Jan. 1, 2015 July 1, 2016 Nov. 1, 2016 Cost $140,000 87,000 72,100 $40,000 11,100 8,100 Straight-line Declining-balance Units-of-activity 2 For the declining-balance method, Sandhill Co. uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 32,000. Actual hours of use in the first 3 years were: 2016, 780; 2017, 5,400; and 2018, 6,900 Compute the amount of accumulated depreciation on each machine at December 31, 2018 MACHINE 1 MACHINE 2 MACHINE 3 $enter a dollar amount] $[enter a dollar amount] $[enter a dollar amount] Accumulated Depreciation at December 31 If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017? 2016 2017 Depreciation Expense s[enter a dollar amount] $enter a dollar amount]
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