In recent years Wang Company purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant selected 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, 2008 $96,780 $12,300 6 Straight-line
2 July. 1, 2009 103,600 10,140 5 Declining balance
3 Nov. 1, 2009 71,520 6,480 6 Units-of-activity


For the declining-balance method, Wang 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: 2009, 500; 2010, 4,800; and 2011, 5,200.

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2011. (Round all answers to 0 decimal places, e.g. 2,510. For Units-of-activity method, round per unit cost to 2 decimal places, e.g. 25.10 before calculating depreciation.)



Machine 1 $
Machine 2 $
Machine 3 $


(b) If machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this Machine in 2009? In 2010?



2009 $
2010 $

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(a) Accumulated
Depreciation
Year Computation 12/31
MACHINE 1
2008 $84,000* X 1/6 = $14,000 $14,000
2009 $84,000 X 1/6 = $14,000 28,000
2010 $84,000 X 1/6 = $14,000 42,000
2011 $84,000 X 1/6 = $14,000 56,000

*($96,000 – $12,000)

MACHINE 2
2009 $85,000 X 40%* X 6/12 = $17,000 $17,000
2010 $68,000 X 40% = $27,200 44,200
2011 $40,800 X 40% = $16,320 60,520

*(1/5) X 2

MACHINE 3
2009 400 X $2.50a = $ 1,000 $ 1,000
2010 4,500 X $2.50 = $11,250 12,250
2011 5,000 X $2.50 = $12,500 24,750

a($66,000 – $6,000) ÷ 24,000

Depreciation
(b) Year Expense
MACHINE 2
2009 $85,000 X 40% X 3/12 = $8,500

2010 $76,500 X 40% = $30,600