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Problem 11-4 (Part Level Submission) Pronghorn Tool Corp, records depreclation annually at the end of the year Its policy is to take a full year's depreclation on all assets that are used throughout the year and depreclation for half a year on all machines that are acquired or disposed of during the year. The depreciation rate for the machinery is 10%, applied on a straight-line basis, with no estmated scrap or residual value. The balance of the Machinery account at the beginning of 2017 was 3172,00: the Accumulated Depreciation on Machinery account had a balance of72,900. The machinery accounts were attected by th e tollowing transactions that occurred in 2017: an. 15 Macn no. 38, which cost $9,300 when it was acquired on June 3, 2010, was retired and sold as scrap metal for $600. Feh. 27 Machine no. 81 was purchased. The fair value af this machine was $12,500. it replaced two machines, nos. 12 and 27, which were traded in on the new machine. Machine no. 12 was acquired on February 4, 2005, at a cost of $5,500 and was st l carried in the accounts although it was fulty depreciated and not in use. Machine no 27 was acquired on June 11, 2010, at a cost of 8,200 In addition to these two used machines Prongho paid $4,000 in cash Apr. 7 Machine no. 54 was equipped with electric contrels at a cost of $1,440. This machine, criginally equipped with simple hand controls, was purchased on December 11, 2013, tor s1,000. The new electric controls can be attached to any one of several machines in the 12 Machine no. 24 was repaired at cost of $1,220 after a fire caused by a short circuit in the wiring burned out the mutor and damaged certain essential parts. Machines 25, 26, and 41 were sold for $3,100 cash. The purchase dates and cost of these machines were as folloNs: uly 22 No. 25 May , 2009 $4,000 No. 26 May 9, 2009 ,200 No. 41 na 1, 2011 2,OD Problem 11-4 (Part Level Submission) Pronghorn Tool Corp, records depreclation annually at the end of the year Its policy is to take a full year's depreclation on all assets that are used throughout the year and depreclation for half a year on all machines that are acquired or disposed of during the year. The depreciation rate for the machinery is 10%, applied on a straight-line basis, with no estmated scrap or residual value. The balance of the Machinery account at the beginning of 2017 was 3172,00: the Accumulated Depreciation on Machinery account had a balance of72,900. The machinery accounts were attected by th e tollowing transactions that occurred in 2017: an. 15 Macn no. 38, which cost $9,300 when it was acquired on June 3, 2010, was retired and sold as scrap metal for $600. Feh. 27 Machine no. 81 was purchased. The fair value af this machine was $12,500. it replaced two machines, nos. 12 and 27, which were traded in on the new machine. Machine no. 12 was acquired on February 4, 2005, at a cost of $5,500 and was st l carried in the accounts although it was fulty depreciated and not in use. Machine no 27 was acquired on June 11, 2010, at a cost of 8,200 In addition to these two used machines Prongho paid $4,000 in cash Apr. 7 Machine no. 54 was equipped with electric contrels at a cost of $1,440. This machine, criginally equipped with simple hand controls, was purchased on December 11, 2013, tor s1,000. The new electric controls can be attached to any one of several machines in the 12 Machine no. 24 was repaired at cost of $1,220 after a fire caused by a short circuit in the wiring burned out the mutor and damaged certain essential parts. Machines 25, 26, and 41 were sold for $3,100 cash. The purchase dates and cost of these machines were as folloNs: uly 22 No. 25 May , 2009 $4,000 No. 26 May 9, 2009 ,200 No. 41 na 1, 2011 2,OD

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