Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 ) In recent years, Sabine Company has purchased three machines. Because of a bad employee named Wares in the accounting department, a different

Question 3) In recent years, Sabine Company has purchased three machines. Because of a bad employee named Wares in the accounting department, a different accountant was hired to take charge of selecting the depreciation method for each machine. Information concerning the machines is summarized in the table below.
\table[[Machine,Acquired,Cost,\table[[Salvage],[Value(in years)]],Useful Lifo,\table[[Depreciation],[method]]],[1,Jan. 1,2023,$99,000,$12,000,15,Straight-line],[2,Oct. 1,2024,$85,000,$10,000,5,Double-Declining Balance],[3,Nov. 1,2024,$66,000,$6,000,6,Units-of-Activity]]
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: 2024,800;2025,4,500; and 2026,7,000.
Instructions:
A) Compute the amount of accumulated depreciation on each machine at December 31,2028.2026
B) If machine 2 was purchased on April 1 instead of October 1, what would be the depreciation expense for this machine in 2024? In 2025?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Forensics Body Of Knowledge

Authors: Darrell D. Dorrell, Gregory A. Gadawski

1st Edition

0470880856, 978-0470880852

More Books

Students also viewed these Accounting questions

Question

If junk bonds are "junk," then why do investors buy them?

Answered: 1 week ago

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago