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In recent years, Cullumber 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 Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $91,200 $11,200 5 Straight-line 2 July 1, 2026 87,500 10,350 5 Diminishing-balance 3 Nov. 1, 2026 66,585 5,510 6 Units-of-production For the diminishing-balance method, Cullumber Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,430. Actual hours of use in the first 3 years were: 2026, 390; 2027, 4,070; and 2028, 5,180. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg. 5.20 and answers to the nearest whole dollar, eg. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Year 2025 $ 2026 2027 2028 2029 Calculation Depreciable Depreciation Cost Rate Machine 2: Diminishing-balance depreciation Year Carrying Amount Beg. of Year 2026 $ 2027 2028 2029 2030 Machine 3: Units-of-production depreciation Calculation Depreciation Rate/Unit $ # of Months % % ✓ % ✓ % % ✓ Calculation Depreciation Rate % # of Months Depreciation Expense $ ✓ $ % ✓ % ✓ % Depreciation Expense End of Year Depreciation Expense Accumulated Depreciation Carrying Amount $ $

In recent years, Cullumber 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 Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $91,200 $11,200 5 Straight-line 2 July 1, 2026 87,500 10,350 5 Diminishing-balance 3 Nov. 1, 2026 66,585 5,510 6 Units-of-production For the diminishing-balance method, Cullumber Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,430. Actual hours of use in the first 3 years were: 2026, 390; 2027, 4,070; and 2028, 5,180. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg. 5.20 and answers to the nearest whole dollar, eg. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Year 2025 $ 2026 2027 2028 2029 Calculation Depreciable Depreciation Cost Rate Machine 2: Diminishing-balance depreciation Year Carrying Amount Beg. of Year 2026 $ 2027 2028 2029 2030 Machine 3: Units-of-production depreciation Calculation Depreciation Rate/Unit $ # of Months % % ✓ % ✓ % % ✓ Calculation Depreciation Rate % # of Months Depreciation Expense $ ✓ $ % ✓ % ✓ % Depreciation Expense End of Year Depreciation Expense Accumulated Depreciation Carrying Amount $ $

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 29P
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In recent years, Cullumber 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 Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $91,200 $11,200 5 Straight-line 2 July 1, 2026 87,500 10,350 5 Diminishing-balance 3 Nov. 1, 2026 66,585 5,510 6 Units-of-production For the diminishing-balance method, Cullumber Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,430. Actual hours of use in the first 3 years were: 2026, 390; 2027, 4,070; and 2028, 5,180. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg. 5.20 and answers to the nearest whole dollar, eg. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Year 2025 $ 2026 2027 2028 2029 Calculation Depreciation Expense ✓ $ Depreciable Depreciation # of Cost Rate Months % Machine 2: Diminishing-balance depreciation Year Carrying Amount Beg. of Year 2026 $ 2027 2028 2029 2030 Machine 3: Units-of-production depreciation Calculation Depreciation Rate/Unit $ Calculation Depreciation Rate % く % % % # of Months % $ % % % Depreciation Expense End of Year Depreciation Expense Accumulated Depreciation Carrying Amount $ $
Transcribed Image Text:In recent years, Cullumber 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 Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $91,200 $11,200 5 Straight-line 2 July 1, 2026 87,500 10,350 5 Diminishing-balance 3 Nov. 1, 2026 66,585 5,510 6 Units-of-production For the diminishing-balance method, Cullumber Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,430. Actual hours of use in the first 3 years were: 2026, 390; 2027, 4,070; and 2028, 5,180. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, eg. 5.20 and answers to the nearest whole dollar, eg. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Year 2025 $ 2026 2027 2028 2029 Calculation Depreciation Expense ✓ $ Depreciable Depreciation # of Cost Rate Months % Machine 2: Diminishing-balance depreciation Year Carrying Amount Beg. of Year 2026 $ 2027 2028 2029 2030 Machine 3: Units-of-production depreciation Calculation Depreciation Rate/Unit $ Calculation Depreciation Rate % く % % % # of Months % $ % % % Depreciation Expense End of Year Depreciation Expense Accumulated Depreciation Carrying Amount $ $
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