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In recent years, Wildhorse Co. has purchased three machines. Because of frequent employee turnover in...

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Accounting

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In recent years, Wildhorse Co. 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 beloww Salvage Value Useful Life (in years) 8 Depreciation Method Machine Cost Acquired Jan. 1, 2015 July 1, 2016 Nov. 1, 2016 $120,000 90,000 70,400 $40,000 10,700 8,400 Straight-line Declining-balance Units-of-activity 2 7 For the declining-balance method, Wildhorse Co. 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: 2016, 740; 2017, 6,500; and 2018, 7,900 Compute the amount of accumulated depreciation on each machine at December 31, 2018 MACHINE 1 MACHINE 2 MACHLNES Accumulated Depreciation at December 31 40000 s If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016? In 2017? 2016 2017 Depreciation Expense

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