ACCOUNTING-In recent years, Farr Company has purchased three machines.

In
recent years, Farr Company 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, 2012

$122,000

$35,600

8

Straight-line

2

July 1, 2013

82,000

11,800

5

Declining-balance

3

Nov. 1, 2013

101,500

8,500

7

Units-of-activity

For the declining-balance method, Farr Company 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:
2013, 800; 2014, 6,180; and 2015, 7,780.

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Compute the amount of accumulated depreciation on each
machine at December 31, 2015.

MACHINE
1

MACHINE
2

MACHINE
3

Accumulated
Depreciation at December 31

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If machine 2 was purchased on April 1 instead of July 1,
what would be the depreciation expense for this machine in 2013? In 2014?

2013

2014

Depreciation Expense

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