In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the...
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In recent years, Crane 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. Machine 1 2 3 Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Cost $130,500 88,000 76,100 Salvage Value $30,500 10,100 9,100 Useful Life (in years) 10 5 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 33,500. Actual hours of use in the first 3 years were: 2021, 660; 2022, 5,700; and 2023, 7,300. (b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In 2022? Depreciation Expense eTextbook and Media Save for Later 2021 $ 2022 Attempts: 0 of 1 used Submit Answer In recent years, Crane 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. Machine 1 2 3 Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Cost $130,500 88,000 76,100 Salvage Value $30,500 10,100 9,100 Useful Life (in years) 10 5 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, Crane Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 33,500. Actual hours of use in the first 3 years were: 2021, 660; 2022, 5,700; and 2023, 7,300. (b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In 2022? Depreciation Expense eTextbook and Media Save for Later 2021 $ 2022 Attempts: 0 of 1 used Submit Answer
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Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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