Question
A machine costing $206,600 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 $206,600 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 479,000 units of product during its life. It actually produces the following units: 122,900 in Year 1, 123,900 in Year 2, 121,000 in Year 3, 121,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.)
Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all depreciation. Straight-Line Depreciation Depreciation Year Expense Year 1 Year 2 Year 3 Year 4 Total $ 0 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years cor production. Units of Production Depreciation Year Depreciable Units Units Depreciation Expense per unit Year 1 122,900 Year 2 123,900 Year 3 121,000 121,200 Year 4 Total $ 0 End of Period DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value Year 1 % $ 0 Year 2 0 0 Year 3 % Year 4 % 0 Total $ 0Step by Step Solution
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