Question In recent years, Carla Vista Corporation 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 1 2 3 Acquired Jan. 1, 2022 July 1, 2023 Nov. 1, 2023 Cost $102,700 90,000 58,270 Residual Value $12,900 9,000 5,470 Useful Life (in years) 5 5 Depreciation Method Straight-line Diminishing-balance Units-of-production 6 For the diminishing-balance method, Carla Vista Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 22,000. Actual hours of use in the first 3 years were: 2023, 430; 2024, 4,240; and 2025, 4,630. Machine 2: Diminishing-balance depreciation Carrying Amount Beg. of Year Calculation Depreciation Rate # of months Depreciation Expense Accumi Deprec Year !023 $ % < $ $ $ $ !024 % < 1025 % < 1026 % > 1027 % < Machine 3: Units-of-production depreciation End of Units-of- Production Calculation Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 $ $ ta $ $ 2024 2025

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Transcribed Image Text: In recent years, Carla Vista Corporation 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 1 2 3 Acquired Jan. 1, 2022 July 1, 2023 Nov. 1, 2023 Cost $102,700 90,000 58,270 Residual Value $12,900 9,000 5,470 Useful Life (in years) 5 5 Depreciation Method Straight-line Diminishing-balance Units-of-production 6 For the diminishing-balance method, Carla Vista Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 22,000. Actual hours of use in the first 3 years were: 2023, 430; 2024, 4,240; and 2025, 4,630. Machine 2: Diminishing-balance depreciation Carrying Amount Beg. of Year Calculation Depreciation Rate # of months Depreciation Expense Accumi Deprec Year !023 $ % < $ $ $ $ !024 % < 1025 % < 1026 % > 1027 % < Machine 3: Units-of-production depreciation End of Units-of- Production Calculation Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 $ $ ta $ $ 2024 2025
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Transcribed Image Text: In recent years, Carla Vista Corporation 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 1 2 3 Acquired Jan. 1, 2022 July 1, 2023 Nov. 1, 2023 Cost $102,700 90,000 58,270 Residual Value $12,900 9,000 5,470 Useful Life (in years) 5 5 Depreciation Method Straight-line Diminishing-balance Units-of-production 6 For the diminishing-balance method, Carla Vista Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 22,000. Actual hours of use in the first 3 years were: 2023, 430; 2024, 4,240; and 2025, 4,630. Machine 2: Diminishing-balance depreciation Carrying Amount Beg. of Year Calculation Depreciation Rate # of months Depreciation Expense Accumi Deprec Year !023 $ % < $ $ $ $ !024 % < 1025 % < 1026 % > 1027 % < Machine 3: Units-of-production depreciation End of Units-of- Production Calculation Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 $ $ ta $ $ 2024 2025
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