In recent years, Walz 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, 2010 |
|
$133,000 |
|
$30,000 |
|
10 |
|
Straight-line |
| 2 |
|
July 1, 2011 |
|
75,000 |
|
10,600 |
|
5 |
|
Declining-balance |
| 3 |
|
Nov. 1, 2011 |
|
92,700 |
|
6,300 |
|
6 |
|
Units-of-activity |
For the declining-balance method, Walz Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 32,000. Actual hours of use in the first 3 years were: 2011, 900; 2012, 3,820; and 2013, 5,100.
(a) Compute the amount of accumulated depreciation on each machine at December 31, 2013.
(b) If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2011? In 2012?