Solution-Compute the amount of accumulated depreciation

Compute the amount of accumulated depreciation

Assignment Help Managerial Accounting

Reference no: EM131115228

In recent years, Farr 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	Acquired	Cost	Salvage Value	Useful Life (in years)	Depreciation Method
1	Jan. 1, 2012	$127,000	$28,000	9	Straight-line
2	July 1,2013	89,000	12,000	5	Declining-balance
3	Nov. 1, 2013	95,150	8,350	7	Units-of-activity

For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were: 2013, 650; 2014, 6,500; and 2015, 7,720.

Compute the amount of accumulated depreciation on each machine at December 31, 2015.

If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014?

Reference no: EM131115228

Questions Cloud

What does cochrane think about tax expenditures : What does Cochrane think about tax expenditures? Why does our political system mix goals? Why is "simple" important for the tax code? What is the straightforward problem and solution to our debt and deficits?

Create a survey that examined the frequency of drug use : Imagine you were to create a survey that examined the frequency of drug use in middle school children. Referring back to the considerations for creating surveys presented in this module and in your textbook, what specific factors would you need to..

Outsourcing and profit maximization : As we witness the volatility in the political world and ever more intense pressure to make profits in business, do you think that Porter's ideas on Shared Value are going to be a major piece of corporate strategy or will the focus be more on conti..

The companys income statement for 2010 : Accounting for R&D Costs during 2008, Robin Wright Tool Company purchased a building site for its proposed research and development laboratory at a cost of $60,000.

Compute the amount of accumulated depreciation : Compute the amount of accumulated depreciation on each machine at December 31, 2015. If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014

Disaffirm the liability waiver : The school asserted that he had signed their waiver of liability and therefore was prohibited from recovering any damages. Could Pi disaffirm the liability waiver? Explain your answer applying the law you learned and include any case law reference..

Was uss actions in denying mexican trucks access to highways : Was the US's actions in denying Mexican trucks access to US highways in 2009 warranted when it comes to saving transportation jobs? Explain.

Explain the negative stereotypes and attitudes : Brief description of someone you know who is prejudiced against a group and its individual members. Explain the negative stereotypes and/or attitudes that this person holds toward the group and the degree to which the biases are explicit or implic..

Disaffirm the contract : Under what grounds is it possible for Kevin Green to disaffirm the contract? Does Star Chevrolet have to return the purchase money to Kevin Green, even though the car is now destroyed?

User Account

All Pages

Compute the amount of accumulated depreciation

Reference no: EM131115228

Reference no: EM131115228

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

How do information systems projects get started

The principal must be paid in february

Identify and discuss the strategic factors

Calculate the payback period into one

When determining the amount of cash paid for income taxes

Calculate the expected gross margin next month

Record the dividend declaration in a journal entry

What is the managers prior probability

Performance drinks - a further study of regression analysis

Bent & dent had used the perpetual inventory system

Which activities are done each time a wafer is produced

What is the cash flow to stockholders

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT