In recent years Howard Company has purchased three machines. Because of fre- quent 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 Years useful life Depreciation Method
1 July 1, 2012 68,000 5,000 7 Straight line
2 April 1, 2013 64,000 6,000 4 Declining Balance
3 Sept 1, 2013 84,000 4,000 8 Units of activity
For the declining-balance method, Howard Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 40,000. Actual hours of use in the first 3 years were: 2013, 1,200; 2014, 6,400; and 2015, 7,000.
Instructions
(a) Compute the amount of accumulated depreciation on each machine at December 31, 2015.
(b) If machine 2 was purchased on November 1 instead of April 1, what would be the depreciation expense for this machine in 2013? In 2014? (Round to the nearest dollar.)"