What would be the depreciation expense for this machine

Assignment Help Financial Accounting

Reference no: EM13134351

In recent years, Pablo Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and each selected a different method. Information concerning
the machines is summarized below.

Salvage Useful Life Depreciation

Machine Acquired Cost Value in Years Method

1 1/1/07 $105,000 $ 5,000 10 Straight-line
2 1/1/08 150,000 10,000 8 Declining-balance
3 11/1/10 100,000 15,000 6 Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were: 2010, 2,000; 2011, 4,500; and 2012, 5,500.

Instructions

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2010.

(b) If machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2008 and (2) 2009?

Reference no: EM13134351

Questions Cloud

Confidence interval for difference in patients hypertension : Generate a 95% confidence interval for the difference in proportions of patients with hypertension between groups. Experimental (n=100) =14%

What is the gini coefficient now : suppose the poorest 90 percent of citizens actually have an income of $15,000 because each receives $5,000 of unreported income from the underground economy. what is the Gini coefficient now?

How many moles of ions are released : When 0.097 moles of Magnesium hydroxide (Mg(OH)2) is dissolved in water, how many moles of ions are released into the solution ?

List five format differences in the companies balance sheet : Access the financial statements from the most recent annual report of a foreign company and a domestic company with which you are familiar to complete this assignment.

What would be the depreciation expense for this machine : Compute the amount of accumulated depreciation on each machine at December 31, 2010. what would be the depreciation expense for this machine in (1) 2008 and (2) 2009?

Explain what is the functional groups and molecular formula : what is the functional groups and molecular formula of aspartame, the NH2 is below the 3rd C and the CH2 is below the 5th C

What is a cshp and its important for community health : What is a CSHP, and why is it so important for community health? What are some things that we can do as healthcare managers to support effective school health programming? Provide specific examples.

Calculate the molarity of a solution of glycerol : Calculate the molarity of a solution of glycerol made by dissolving 59.000 mL glycerol at 15 degrees celcius in enough water to make 380.00 mL of solution

My glory productions has just finished : My Glory Productions has just finished production of Troubles Ahead, the latest action film directed by Fleur Dunne and starring Rodney Kid and Tess Bow.

User Account

All Pages