Acc280 Financial Accounting: P10-2A In recent years, Hrubeck Company purchased three machines

Acc280 Financial Accounting

P10-2A
In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine and various methods were selected. Information concerning the machine is summarized below:
Machine Acquired Cost Salvage Value Useful Life in years Depreciation Method
1 1/1/2003 76,000 6,000 10 Straight-line
2 1/1/2004 80,000 10,000 8 Declining-balance
3 11/1/2006 78,000 6,000 6 Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2006, 1,000; 2007, 4,500; and 2008, 5,000.
Instructions:
a. Compute the amount of accumulated depreciation of each machine at December 31, 2006.
b. If machine 2 had been purchased on April 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2004 and (2) 2005?
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