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Question: In recent years, Farr 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, 2012
$130,000
$36,400
9
Straight-line
2
July 1, 2013
99,000
12,000
5
Declining-balance
3
Nov. 1, 2013
76,410
7,110
6
Units-of-activity
For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 33,000. Actual hours of use in the first 3 years were: 2013, 840; 2014, 6,240; and 2015, 7,690.
Compute the amount of accumulated depreciation on each machine at December 31, 2015.
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