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

Problem 9-7AIn 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.MachineAcquiredCostSalvageValueUseful Life(in years)DepreciationMethod1Jan. 1, 2012$121,000$15,00010Straight-line2July 1, 201380,00010,2005Declining-balance3Nov. 1, 201390,4806,7806Units-of-activityFor 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.

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