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What would be the depreciation expense for machine

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Reference no: EM13533061

In recent years, Walz 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.

Salvage

Useful Life

Machine

Acquired

Cost

Value

(in years)

Depreciation Method

1

Jan. 1, 2010

$96,000

$12,000

8

Straight-line

2

July 1, 2011

85,000

10,000

5

Declining-balance

3

Nov. 1, 2011

66,000

6,000

6

Units-of-activity

For the declining-balance method, Walz Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2011, 800; 2012, 4,500; and 2013, 6,000.

Instructions

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2013.

(b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2011? In 2012?

Reference no: EM13533061

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