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2 of 1 problems a Problem 8-2A (Algo) Depreciation methods LO P1 CI A machine costing $210,000 with a four-year life and an estimated $20,000
2 of 1 problems
a Problem 8-2A (Algo) Depreciation methods LO P1 CI A machine costing $210,000 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 121,800 in Year 1, 122,800 in Year 2, 120,200 in Year 3, 120,200 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) 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 und production. Units of Production Depreciable Depreciation Units Year Units Depreciation Expense per unit 1 2 121,800 122,800 120,200 120,200 3 4 Total Step by Step Solution
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