In recent years, Jayme Company has purchased three machines. Because of frequent employee turnover in the accounting

Question:

In recent years, Jayme 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.

image text in transcribedFor the declining-balance method, Jayme Company uses the double-declining rate. For the units-ofactivity method, total machine hours are expected to be 30,000 . Actual hours of use in the first 3 years were 2024, 800; 2025, 4,500; and 2026, 6,000.

Instructions

a. Compute the amount of accumulated depreciation on each machine at December 31, 2026.

b. If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2024? In 2025?

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Related Book For  book-img-for-question

Financial Accounting Tools For Business Decision Making

ISBN: 9781119791089

10th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

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