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Question 2(20 marks). Bill Company purchased three machines. Information about the machines is as...

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Accounting

Question 2(20 marks).
Bill Company purchased three machines. Information about the machines is as follows:
\table[[Machine,\table[[Acquired time (month-],[day-year)]],Cost ($alvage value ($),\table[[Useful life in],[years]],Depreciation method,],[1,01-01-2007,96,000,6,000,10,Straight line],[2,01-01-2006,53,000,3,000,8,Declining balance],[3,01-01-2007,86,000,6,000,8,Units of activity]]
For the declining-balance method, the firm uses the doubledeclining rate. For the units-of-activity method, total machine hours are expected to be 40,000. Actual hours of use in the first 3 years were: 2000 hours of 2007;3000 hours of 2008; 4000 hours of 2009.
Required:
(1) Compute the amount of depreciation on each machine for the year of 2007 ONLY. (15 marks )
(2) Journalize the adjusting entry of depreciation for machine 1 at Dec.31,2007. Ignore the description of the transaction. (5 marks)
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