Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in recent years, carla vista co. has purchased thr

In recent years, Carla Vista Co. has purchased three machines. Because of frequent employee turnover...

50.1K

Verified Solution

Question

Accounting

In recent years, Carla Vista 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 below.

Machine

Acquired

Cost

Salvage Value

Useful Life (in years)

Depreciation Method

1

 Jan. 1, 2015 $ 123,000 $ 43,000 8 Straight-line

2

 July 1, 2016 76,000 10,700 5 Declining-balance

3

 Nov. 1, 2016 76,800 6,800 6 Units-of-activity

For the declining-balance method, Carla Vista Co. uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 35,000. Actual hours of use in the first 3 years were: 2016, 840; 2017, 3,700; and 2018, 4,900.

1) Compute the amount of accumulated depreciation on each machine at December 31, 2018.

2) 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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

An angel investor is interested in taking a stake in your business, be proactive and write...

Finance
Q

A woman of mass m = 58.9 kg sits on the left end of a seesaw—a...

Physics
Q

A gas turbine power plant operates on a Brayton cycles has a pressure ratio of 7....

Mechanical Engineering
Q

What are the effects of the tension between the cabinet and the Executive Office of the...

General Management
Q

1 Improper designing or calibration 2 Zero error 3 External conditions 4 Both 1 2...

Physics
Q

6 Use the Unit Circle and the Reciprocal and Quotient Identities to evaluate the following...

Geometry
Q

There are 170 adults and 225 children at a zoo. The zoo makes a total...

Basic Math
Q

Using the cumulative frequency distribution below determine how many individuals ere in the 55 59...

Statistics
Q

Multiply and Simplify 24 x 16 X42x 13 4x44 E 4 x 2 4 2...

Algebra
Q

The two main surgical units and their actual activity usage follow. Required: 1. Compute activity...

Accounting
Q

While James Craig and his former classmate Paul Dolittle both studied accounting at school, they...

Accounting
Q

Required Information [The following information applies to the questions displayed below.] The following...

Accounting