Question

Jackson Company’s records show the following machinery acquisitions and retirements during the first two years of operations:



Required:
1. Compute depreciation expense for 20X5 and for 20X6 and the balances of the machinery and related accumulated depreciation accounts at the end of each year, using straight- line amortization. Machinery is depreciated according to the number of months of ownership in the year of acquisition or retirement. Assume no residual values. There are no sale proceeds upon retirement. Show computations and round to the nearest dollar. Set up separate columns in a schedule for machinery and for accumulated depreciation.
2. Compute depreciation expense for 20X5 and for 20X6 and the balances of the machinery and related accumulated depreciation accounts at the end of each year using straight-line depreciation. Machinery is depreciated for one- half year in the year of acquisition. Machinery retired is depreciated for one- half year in its year of retirement. Assume no residual values. There are no sale proceeds upon retirement. Show computations and round to the nearest dollar. Set up separate columns in a schedule for machinery and for accumulated depreciation.
3. Comment on the differences between requirements (1) and (2).


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  • CreatedFebruary 17, 2015
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