# Question q13: 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 Acquired Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2022 \$94,300 \$12,100 5 Straight-line 2 July 1, 2023 88,750 10,300 5 Diminishing-balance 3 Nov. 1, 2023 66,726 6,380 6 Units-of-production 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 23,210. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,920; and 2025, 4,790. 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. Residual Value Useful Life (in years) ) Machine Acquired Cost Depreciation Method 1 Jan. 1.2022 \$94,300 \$12,100 5 Straight-line 2 July 1, 2023 88.750 10,300 5 Diminishing-balance Units-of-production - 3 Nov. 1, 2023 66.726 6,380 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 23,210. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,920 and 2025, 4.790. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg: 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. . . Enter O for amounts.) Machine 1: Straight-line depreciation Calculation Depreciable Cost Depreciation Rate #of months Depreciation Expense Year 2022 \$ % \$ 2023 % V 2024 % 2025 % 2026 % Machine 2. Diminishing-balance depreciation Calculation Carrying Amount Beg. of Year Depreciation Rate #of months Depreciation Expense Year 2023 \$ % 2024 % V 2025 % பபபபப 2026 % V 2027 % Machine 3: Units-of-production depreciation Calculation End d Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 \$ \$ \$ 2024 2025 If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2023? In 20242 Depreciation expense in 2023 \$ Depreciation expense in 2024 \$

OBQQXS The Asker · Accounting

q13: 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 Acquired Cost Residual
Value
Useful Life
(in years)
Depreciation Method
1 Jan. 1, 2022 \$94,300 \$12,100 5 Straight-line
2 July 1, 2023 88,750 10,300 5 Diminishing-balance
3 Nov. 1, 2023 66,726 6,380 6 Units-of-production

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 23,210. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,920; and 2025, 4,790.

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. Residual Value Useful Life (in years) ) Machine Acquired Cost Depreciation Method 1 Jan. 1.2022 \$94,300 \$12,100 5 Straight-line 2 July 1, 2023 88.750 10,300 5 Diminishing-balance Units-of-production - 3 Nov. 1, 2023 66.726 6,380 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 23,210. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,920 and 2025, 4.790. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg: 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. . . Enter O for amounts.) Machine 1: Straight-line depreciation Calculation Depreciable Cost Depreciation Rate #of months Depreciation Expense Year 2022 \$ % \$ 2023 % V 2024 % 2025 % 2026 % Machine 2. Diminishing-balance depreciation Calculation Carrying Amount Beg. of Year Depreciation Rate #of months Depreciation Expense Year 2023 \$ % 2024 % V 2025 % பபபபப 2026 % V 2027 % Machine 3: Units-of-production depreciation Calculation End d Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 \$ \$ \$ 2024 2025 If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2023? In 20242 Depreciation expense in 2023 \$ Depreciation expense in 2024 \$
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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. Residual Value Useful Life (in years) ) Machine Acquired Cost Depreciation Method 1 Jan. 1.2022 \$94,300 \$12,100 5 Straight-line 2 July 1, 2023 88.750 10,300 5 Diminishing-balance Units-of-production - 3 Nov. 1, 2023 66.726 6,380 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 23,210. Actual hours of use in the first 3 years were: 2023, 380; 2024, 4,920 and 2025, 4.790. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg: 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. . . Enter O for amounts.) Machine 1: Straight-line depreciation Calculation Depreciable Cost Depreciation Rate #of months Depreciation Expense Year 2022 \$ % \$ 2023 % V 2024 % 2025 % 2026 % Machine 2. Diminishing-balance depreciation Calculation Carrying Amount Beg. of Year Depreciation Rate #of months Depreciation Expense Year 2023 \$ % 2024 % V 2025 % பபபபப 2026 % V 2027 % Machine 3: Units-of-production depreciation Calculation End d Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2023 \$ \$ \$ 2024 2025 If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2023? In 20242 Depreciation expense in 2023 \$ Depreciation expense in 2024 \$
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In case u face any issues please let me know. &#160; Answer:&#160; Year Depreciable Cost Depreciation Rate Months Depreciation Expense Accumulated Depreciation 2022 \$82,200 20% 12 \$16,440 \$16,440 2023 \$82,200 20% 12 \$16,440 \$32,880 2024 \$82,200 20% 12 \$16,440 \$49,320 2025 \$82,200 20% 12 \$16,440 \$65,760 2026 \$82,200 20% 12 \$16,440 \$82,200 Straight line Depreciation rate = 1/5 = 20% Depreciable amount =&#160;\$94,300 - 12,100 = \$82,200 Straight line depreciation expense = \$94,300 - 12,100 / 5 = \$16,440 &#160; 2. Declining&#160;&#160;Balance&#160; Double declining rate = 1/5 * 2 = .20 * 2 = .40 or 40% Year Carrying amount beginning of the year Depreciation Rate Months Depreciation Expense Accumulated Depreciation Ending Value 2023 \$88,750 40% 6 \$17,750 \$17,750 \$71,000 2024 \$71,000 40% 12 \$28,400 \$46,150 \$42,600 2025 \$42,600 40% 12 \$17,040 \$63,190 \$25,560 2026 \$25,560 40% 12 \$10,224 \$73,414 \$15,336 2027 \$15,336 40% 6 \$5,036 \$78,450 10,300 Depreciatio E ... See the full answer