Question

Question 1

In recent years, Blossom 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.

For the diminishing-balance method, Blossom Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,950. Actual hours of use in the first 3 years were: 2019, 420; 2020, 4,440; and 2021, 5,500.

Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.)

If Machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this machine in 2019? In 2020?

Question 1 In recent years, Blossom 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 Jan. 1, 2018 July 1, 2019 Nov. 1, 2019 Cost $101,200 8 1,250 66,430 Residual Useful Life Value (in years) $11,600 5 9,520 5 6,550 Depreciation Method Straight-line Diminishing-balance Units-of-production 2 For the diminishing-balance method, Blossom Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,950. Actual hours of use in the first 3 years were: 2019, 420; 2020, 4,440; and 2021, 5,500. Your answer is partially correct. Try again. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 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 Depreciable Cost Calculation Depreciation Rate # of months End of Year Accumulated Carrying Depreciation Amount Depreciation Expense Year EBE ZEZ 2018 2019

Answer 1

Answers Machine-1-> släccight nne method :- Depreciation cost = cost – sallage value z $ 101,200 - $ 1600 = $89,600 Year Depreciation (*x100) Depreciation rate 20*1. No.of months Depreciation expense Cost rate Accumulated carrying depreciation Amount $1917,920' $83,280 $35,840 $65,360 12 m $17920 2018 $89600 $18920 12m 2019 $89600 20%. $17920 $53,760 47,440 12m 20% $89600 2020 $8960o 20% 12m $17920 $71,650 2021 . $207,520 $89600 7.07 . ure 1 $17920 $89600 $11,600 2022 = =

machine -2 -> Diminishing bouance method.- Depreciation rate of per straight line methode ex loo = 2006 .: Deeprate or double-deconing balance: 2820*1. = 40.1 - Year 000191ying anut beg. of year oppreciation rate Noel monly Depreciation Expense Accumulated depreciation Rooying Amout $16,250 $16,250 2019 6m $65000 40'7 $81250 $42,200 $26000 $39,000 2020 $ 65100 40'7. 12 m $(5,600 $54,800 2021 12 m $23,400 $39000 UD'l. $631,210 - 2022 $140UO. $23,400 40. 89360 12 m 71730 2023 $luguo yol 4520 $ o 12 m 9520 lice machine-3 : Whits of productions cost - swage value Total estimated units .: Depreciation cost per uwt - $66,430 - $ 6530 24,450 = $2.4. perunit

Units of production Depreciation cost/unit Depreciation £ реңе Accumulated depreciation 00194g #mount 2019 $1008 $1008 $65,422 $264 420 $11,664 $54,766 2020 uu40 204 $24,864 $13,200 $41,566 2021 5500 2:4 SK CU It machine 2 was porchased on October 1 ingléad of July 1. Depreciation Expense in 2019 = $81,250 x 4096 x 3m 12m ē $8125 Depreciation Expense in 2020 - $81,250- $ 8125) x 40'l. = $29,200