Problem 9-7A
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

$136,000

$27,000

10

Straight-line

2

July 1, 2013

87,000

11,800

5

Declining-balance

3

Nov. 1, 2013

91,520

7,820

6

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, 900; 2014, 3,650; and 2015, 5,060.

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

MACHINE 1

MACHINE 2

MACHINE 3

Accumulated Depreciation at
December 31

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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?

2013

2014

Depreciation Expense

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Problem 9-7AIn 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.MachineAcquiredCostSalvage
ValueUseful Life
(in years)Depreciation
Method1Jan. 1, 2012$136,000$27,00010Straight-line2July 1, 201387,00011,8005Declining-balance3Nov. 1, 201391,5207,8206Units-of-activity
For the declining-balance method, Farr Company uses the double-declining
rate. For the units-of-activity method, total machine hours are expected
to be 31,000. Actual hours of use in the first 3 years were:
2013, 900; 2014, 3,650; and 2015, 5,060..png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”Incorrect answer.”>Your answer is incorrect.
Try again. Compute the amount of
accumulated depreciation on each machine at December 31, 2015.MACHINE 1MACHINE 2MACHINE 3Accumulated Depreciation at
December 31$.gif” alt=”Entry field with incorrect answer now contains modified data”>$.gif” alt=”Entry field with incorrect answer now contains modified data”>$.gif” alt=”Entry field with incorrect answer now contains modified data”>
.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2377744entrance1&selected_question=quest2377744&operation=take-question” title=”Link to Text 1″>Link to Text.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2377744entrance1&selected_question=quest2377744&operation=take-question” title=”Link to Text 2″>Link to Text.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”Incorrect answer.”>Your answer is incorrect.
Try again. 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?20132014Depreciation Expense$.gif” alt=”Entry field with incorrect answer now contains modified data”>$.gif” alt=”Entry field with incorrect answer now contains modified data”>
.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2377744entrance1&selected_question=quest2377744&operation=take-question” title=”Link to Text 1″>Link to Text.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Question Attempts: 1 of 3 used
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