Problem 9-8A (Part Level Submission)

In recent years, Crane 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
1		Jan. 1, 2015		$121,500		$11,500		10		Straight-line
2		July 1, 2016		71,000		12,000		5		Declining-balance
3		Nov. 1, 2016		68,100		8,100		6		Units-of-activity

For the declining-balance method, Crane 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, 710; 2017, 5,900; and 2018, 7,300.