Question

In recent years, Darnell 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.


For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2014, 2,000; 2015, 4,500; and 2016, 5,500.

Instructions
(a) Compute the amount of accumulated depreciation on each machine at December 31,
2014.
(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) 2012
(2)2013?


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  • CreatedJanuary 30, 2014
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