You are given a choice of taking the simple interest on 100,000 invested for 2 years

In recent years Wang Company purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant selected 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
machine  acquired               cost         salvage value   useful life  deprec. method
1 Jan. 1, 2008 $96,240 $14,820 6 Straight-line
2 July. 1, 2009 91,400 10,560 5 Declining balance
3 Nov. 1, 2009 72,480 6,240         6 Units-of-activity

For the declining-balance method, Wang 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: 2009, 400; 2010, 4,700; and 2011, 5,100.

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2011. (Round all answers to 0 decimal places, e.g. 2,510. For Units-of-activity method, round per unit cost to 2 decimal places, e.g. 25.10 before calculating depreciation.)


Machine 1 $
Machine 2 $
Machine 3 $

(b) If machine 2 was purchased on October 1 instead of July 1, what would be the depreciation expense for this Machine in 2009? In 2010?


2009 $
2010 $

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