in recent years walz company has purchased three machines 534575
In recent years, Walz 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.
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in recent years walz company has purchased three machines 534575
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Useful Life |
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|
Machine |
Acquired |
Cost |
Value |
(in years) |
Depreciation Method |
|
1 |
Jan. 1, 2010 |
$96,000 |
$12,000 |
8 |
Straight-line |
|
2 |
July 1, 2011 |
85,000 |
10,000 |
5 |
Declining-balance |
|
3 |
Nov. 1, 2011 |
66,000 |
6,000 |
6 |
Units-of-activity |
For the declining-balance method, Walz 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: 2011, 800; 2012, 4,500; and 2013, 6,000.
Instructions
(a) Compute the amount of accumulated depreciation on each machine at December 31, 2013.
(b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2011? In 2012?
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