Assignment
Amount of accumulated depreciation on each machine
In recent years, Sheridan 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, 2015
|
$126,000
|
$38,000
|
8
|
Straight-line
|
|
2
|
July 1, 2016
|
95,000
|
10,100
|
5
|
Declining-balance
|
|
3
|
Nov. 1, 2016
|
78,600
|
7,600
|
7
|
Units-of-activity
|
For the declining-balance method, Sheridan Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 35,500. Actual hours of use in the first 3 years were: 2016, 800; 2017, 4,200; and 2018, 5,500.