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Question - In recent years, Oriole Corporation 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
Residual Value
Useful Life (in years)
Depreciation Method
1
Jan. 1, 2018
$100,500
$12,500
5
Straight-line
2
July 1, 2019
91,250
10,330
Diminishing-balance
3
Nov. 1, 2019
71,806
5,740
6
Units-of-production
For the diminishing-balance method, Oriole Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 25,410. Actual hours of use in the first 3 years were: 2019, 400; 2020, 4,320; and 2021, 4,710.
Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting.
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