PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,000 900 900 710 PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $46,200, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative
Methods [LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were
overhauled, were installed, and started operating. Because the machines were different, each was recorded
separately in the accounts. Details for Machine A are provided below.
Cost of the asset
Installation costs
Renovation costs prior to use
Repairs after production began
$10,000
900
900
710
PA9-1 (Algo) Part 4
4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $46,200, an estimated life
of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)
Transcribed Image Text:PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,000 900 900 710 PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $46,200, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)
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