P9-2B In recent years, Pablo Company purchased three machines. Because of heavy turnover

In recent years, Pablo 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 each selected a different method. Information concerning the machines is summarized below.

    

Machine    Acquired          Cost        Salvage Value    Useful Life in Years     Depreciation Method

1                1/1/09      $105,000$     5,000                  10                        Straight-line

2               1/1/09         150,000   10,000                   8                         Declining-balance

3              11/1/11       100,000    15,000                 6                           Units-of-activity

   

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 25,000. Actual hours of use in the first 3 years were: 2011, 2,000; 2012, 4,500; and 2013, 5,500.

 

Compute depreciation under different methods.

 

Instructions:

 

(a)   Compute the amount of accumulated depreciation on each machine at December 31, 2011.

 

(b)   If machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2009 and (2) 2010?