ABC Company acquired a factory building, equipment, and machinery on January 1, 20X0. The cost of each asset acquired and other relevant information are as follows:

• Building - 4,200,000   cost; 200,000 residual value; 20 years useful life; Sum-of-the-years digit depreciation method.
• Equipment - 1,650,000 cost; 50,000 residual value; 8 years useful life; Double declining balance depreciation method.
• Machinery - 900,000 cost - 5 years useful life - Service hours method depreciation method. The service hours of the machine each year from the year of acquisition are 5,000; 4,000; 3,000; 2,000; and 1,000, respectively.

What is the accumulated depreciation balance at the end of 20X1?

Answer rating: 100% (QA)

SOLUTION To calculate the accumulated depreciation balance at the end of 20X1 for each asset we need to apply the respective depreciation methods and ... View the full answer