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Calculation of Accumulated Depreciation.
The Capital Company purchased 3 machines in the past year. Information regarding these items is listed below:
Machine
Acquired
Cost
Salvage Value
Useful life
Depreciation Method
1
Jan 1, 2006
$120,000
$20,000
5 years
Straight-line
2
80,000
10,000
Double-declining
3
Sept 1, 2006
530,000
5,000
4 years
Units of production
Additional information: The total machine hours expected for machine 3 will be 12,000 hours. Actual machine hours used in the first three years were: 200 hours in 2006, 2,250 hours in 2007, and 2,500 hours in 2008
Required: Compute the accumulated depreciation for each machine at December 31, 2008.
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