Q1) Capital Company purchased 3 machines in past year. Information regarding these items is given below:
Machine |
Acquired |
Cost |
Salvage Value |
Useful life |
Depreciation Method |
1 |
Jan 1, 2006 |
$120,000 |
$20,000 |
5 years |
Straight-line |
2 |
Jan 1, 2006 |
80,000 |
10,000 |
5 years |
Double-declining |
3 |
Sept 1, 2006 |
530,000 |
5,000 |
4 years |
Units of production |
Extra information: Total machine hours expected for machine 3 will be 12,000 hours. Actual machine hours used in first three years were: 200 hours in 2006, 2,250 hours in 2007, and 2,500 hours in 2008
Question:
Calculate accumulated depreciation for each machine at December 31, 2008.