Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10 points eBook Print References Problem 10-2A (Algo) Depreciation methods LO P1 A machine costing $216,600 with a four-year life and an estimated $19,000
10 points eBook Print References Problem 10-2A (Algo) Depreciation methods LO P1 A machine costing $216,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 122,600 in Year 1, 122,900 in Year 2, 120,400 in Year 3, 138,100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Year Units Depreciable Units Year 1 122,600 Year 2 122,900 Year 3 120,400 Year 4 138,100 Total Depreciation per unit Depreciation Expense
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started