10-2A (Algo) Depreciation methods LO P1 A machine costing $208,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,900 in Year 1, 123,800 in Year 2, 121,500 in Year 3, 119,800 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. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) tes Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense Year 1 $ 47,500 Year 2 47,500 Year 3 47,500 Year 4 47,500 Total $ 190,000 Straight Line Units of Production > Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under t production. Units of Production Year Units Depreciable Units Depreciation Depreciation per unit Expense Year 1 121,900 0 Year 2 123,800 Year 3 121,500 40 Year 4 119,800 40 Total 80 < Straight Line DDB > Compute depreciation for each year (and total depreciation of all years combined) for the machi (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest will Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine um declining-balance. DDB Depreciation for the Period End of Period Beginning of Year Period Book Depreciation Depreciation Accumulated Book Value Rate Value Expense Depreciation Year 1 % $ 0 Year 2 % 0 Year 3 % 0 Year 4 % 0 Total $ 0 < Units of Production DDB > Journal entry worksheet < 2 3 Record the purchase of a used machine for $288,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Accumulated depreciation-Building Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the costs of $6,000 incurred on the used machine. Note: Enter debits before credits. Date January 03 General Journal Debit Credit Accumulated depreciation-Machinery Record entry Clear entry View general journal > Journal entry worksheet 1 2 Record the cost of $1,200 for an operating platform. Note: Enter debits before credits. Date General Journal Debit Credit January 04 Accumulated depreciation-Machinery Record entry Clear entry View general journal > View transaction list Journal entry worksheet < 1 2 Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 Record the sale of the used machine for $82,000 cash. Note: Enter debits before credits.. Date December 31 General Journal Debit Credit View general journal Record entry Clear entry > Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash and (b) it is sold for $82,000 cash. View transaction list Journal entry worksheet < 1 2 Record the sale of the used machine for $82,000 cash. Note: Enter debits before credits G < Prev of 4 Next