If machine 2 was purchased on april 1 instead of july 1

Reference no: EM13575749

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	$96,000	$12,000	8	Straight-line
2	July 1, 2013	85,000	10,000	5	Declining-balance
3	Nov. 1, 2013	66,000	6,000	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 30,000. Actual hours of use in the first 3 years were: 2013, 800; 2014, 4,500; and 2015, 6,000.

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

Machine 1: $ Machine 2: $ Machine 3: $

2.) 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?

Depreciation Expense - 2013: $ 2014: $

Reference no: EM13575749

Questions Cloud

If the interest rate is 13 percent compounded monthly for : variable interest rates a 15-year annuity pays 1500 per month and payments are made at the end of each month. if the

Assume that hitech is currently using a volume-based : assume that hitech is currently using a volume-based costing system with manufacturing overhead applied to products

What is the value of a bond that matures in 20 years makes : what is the value of a bond that matures in 20 years makes anannual coupon payment of 40 and has a par value of 1000?

A company had stock outstanding as follows during each of : a company had stock outstanding as follows during each of its first three years of operations 2000 shares of 10 100 par

If machine 2 was purchased on april 1 instead of july 1 : in recent years farr company has purchased three machines. because of frequent employee turnover in the accounting

Selling hotdogs during a typical month the stand reports a : selling hotdogs. during a typical month the stand reports a profit of 9000 with sales of 50000 fixed costs of 21000 and

Company a reported the following balance sheet data for the : preparing a common-size balance sheetcompany a reported the following balance sheet data for the most recent three

A company with a break-even point at 900000 in sales : a company with a break-even point at 900000 in sales revenue and had fixed costs of 225000. when actual sales were

Gordon company sponsors a defined benefit pension plan the : gordon company sponsors a defined benefit pension plan. the following information related to the pension plan is

User Account

All Pages