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Final_Exam_Review_Problems

Final_Exam_Review_Problems - P10-2B In recent years Escobar...

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P10-2B. In recent years, Escobar Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning the machines is summarized below. Cost Salvage Value $86,000 100,000 78,000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2008, 1,000; 2009, 4,500; and 2010, 5,000.
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Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2008. (b) If machine 2 had been purchased on April 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2006 and (2) 2007? E10-8. Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2008. His findings are as follows.
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