Compute the amount of accumulated depreciation

Assignment Help Accounting Basics
Reference no: EM13862280

Problem:

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


$136,000


$27,000


10


Straight-line

2


July 1, 2013


87,000


11,800


5


Declining-balance

3


Nov. 1, 2013


91,520


7,820


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 31,000. Actual hours of use in the first 3 years were: 2013, 900; 2014, 3,650; and 2015, 5,060.

Compute the amount of accumulated depreciation on each machine at December 31, 2015.

If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014?

Reference no: EM13862280

Questions Cloud

Analyze the criteria for a successful transaction from : Analyze the criteria for a successful transaction from both the buyer's and seller's perspectives
Prepare the 2014 income statement starting with the line : Prepare the 2014 income statement starting with the line Income from Continuing Operations Before Tax. Use neat format and show each necessary step. Present the earnings per share data at the end ( Round to two decimal places).
Explain the limitations of given portfolio purchasing model : Write an evaluation that critiques the use of Kraljic's Portfolio Purchasing Model as a tool for developing sourcing strategy. Focus your critique on the two dimensions of Kraljic's model. Explain the limitations of the model.
Swimmer pool the optimally sized pool : If the swimming pool is built as planned, what would be the net benefit per day from the swimming pool? What is the consumer surplus for swimmers? Given this information, is an 800-swimmer pool the optimally sized pool for Gruberville to build? Exp..
Compute the amount of accumulated depreciation : Compute the amount of accumulated depreciation on each machine at December 31, 2015 - what would be the depreciation expense for this machine in 2013? In 2014?
What is meant by the transverse magnification of an image : What is meant by the transverse (linear) magnification of an image. An object is placed -30mm from a positive lens and a virtual image four times the size of the object is required. Find graphically and by calculation the necessary focal length of..
Prepare a power point preparation on the nafta : Regional Trading Agreement Research: NAFTA
What are the benefits derived by law enforcement agencies : What are some of the most important benefits derivedby the law enforcement agencies mentioned in the case? How do these technologies allow them to better fightcrime? Provide several examples.
What metrics are used dealing with staffing : What metrics are used dealing with staffing? Provide the name of the metric used and abrief description of its intended purpose. Also describe how the metric collects the data.

Reviews

Write a Review

Accounting Basics Questions & Answers

  The four main behavioral considerations in management

the four key behavioral considerations in management accounting and control system design include all of the following

  Explain the 3 standard setters in g&np accounting

Explain the 3 standard setters in G&NP Accounting

  Calculate the net income of onward

Calculate the net income of Onward, Inc., and the related Federal income tax liability, if any.

  Compute bill and alice taxable income

Compute Bill and Alice's taxable income and tax owed or refund for 2014.

  Prepare a contribution margin income statement

Prepare a contribution margin income statement based on a volume of 3,000 windows. Sales Cost of goods sold Gross profit Operating expenses Advertising expense Salaries.

  What methods are used to allocate the cost

John recently came into a sum of money from an inheritance and is contemplating purchasing a small manufacturing facility in his home town. Not knowing much about running a business, he decided to have lunch with some of the other businesspeople i..

  Gross profit rate of clark company

In the Clark Company, sales were $480,000, sales returns and allowances were $30,000, and cost of goods sold was $288,000. The gross profit rate was

  Total manufacturing cost per unit

The following department data are available: Total materials costs $180,000 Equivalent units of materials 60,000 Total conversion costs $105,000 Equivalent units of conversion costs 30,000 What is the total manufacturing cost per unit?

  Respond to the capstone discussion question determine

respond to the capstone discussion question. determine conditions that might lead to unethical practices and behavior

  Pierce company issued 11 bonds dated january 1 with a face

pierce company issued 11 bonds dated january 1 with a face amount of 800000 on january 1 2009. the bonds sold for

  Krauss leasing company signs a lease agreement on january 1

krauss leasing company signs a lease agreement on january 1 2011 to lease electronic equipment to stewart company. the

  Database management systems can be tremendously expensive

database management systems can be tremendously expensive when taking the initial software cost database administration

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd