# Problem 9-7A In recent years, Farr Company has purchased three machines

18 / 01 / 2019 Research Papers

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Problem 9-7A In recent years, Farr Company has purchased three machines. Because of frequent… 1 answer below » View complete question » Problem 9-7A In recent years, Farr 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, 2012 \$121,000 \$15,000 10 Problem 9-7A In recent years, Farr 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, 2012 \$121,000 \$15,000 10 Straight-line 2 July 1, 2013 80,000 10,200 5 Declining-balance 3 Nov. 1, 2013 90,480 6,780 6 Units-of-activity For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were: 2013, 890; 2014, 3,780; and 2015, 5,450. View less » Dec 01 2015 12:07 PM

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