Question: Hi, Would you please help me with this question? I already have the answer but I dont know how to calculate Accumulated Depreciation. Thank you

Hi, Would you please help me with this question? I already have the answer but I dont know how to calculate Accumulated Depreciation. Thank you so much!

Hi, Would you please help me with this question? I already havethe answer but I dont know how to calculate Accumulated Depreciation. Thank

1310130.}' In recent years Winter Ltd 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 1various methods have been used. Information concerning the machines is summarised in the table below. Residual Usefullife 1 1 Jan. 2012 $135000 $26 250 10 Straighbline 2 1 Jan. 2013 96000 22 500 s Dirninishing~balance' 3 1 jan. 2013 65 {110 15 000 5 Unitswofaproduction 'Using 1125 times the straight-line rate For the units~ofproduction method, total machine hours are expected to he 10 {110. Actual hours of use in the rst 3 years were: 2013, 1000; 2014, 3000; and 2015, 4000. Required (a) Calculate the amount of accumulated depreciation on each machine at 31 December 2015. (b) For Machine 3 in 2015, which depreciation method is the prned method for tax purposes? Explain why. (c) Ifyou are the manager of'Winterudand your honusis linked to prot ofthe company, which depreciation method do you prefer for Machine 5 in 2015? Explain why in point form. Accumulated Depreciation Year Calculation 31112 MACHINE 1 2012 $108,750 X 10% = $10,875 $10,875 2013 $108,750 X 10% = $10,875 21,750 2014 $108,750 X 10% = $10,875 32,625 2015 $108,750 X 10% = $10,875 43,500 MACHINE 2 2013 $96,000 x 18.75% = $18,000 $18,000 2014 $78,000 1: 18.75% = $14,625 32,625 2015 $63,375 x 18.75% = 11,883 (rounding) 44,508 MACHINE 3 2013 1,000 X $5.003 = $5,000 $5,000 2014 3,000 x $5.00 = $15,000 20,000 2015 4,000 x $5.00 = $20,000 40,000 a$50,000 + 10,000 hours = $5.00 Ber machine hour

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