Question
A machine costing $205,800 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $205,800 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys 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: 123,000 in 1st year, 123,600 in 2nd year, 120,000 in 3rd year, 120,400 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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 under each Units of production.
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