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Business, 16.11.2020 17:50 aeress

In recent years, Cullumber 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, 2015 $134,000 $34,000 10 Straight-line
2 July 1, 2016 81,000 11,100 5 Declining-balance
3 Nov. 1, 2016 77,500 8,500 6 Units-of-activity

For the declining-balance method, Cullumber Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500.

Actual hours of use in the first 3 years were:

2016 730
2017 5,900
2018 7,600.

Required:
If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2016?

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