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.


(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?