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A machine costing $206,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory

A machine costing $206,800 with a four-year life and an estimated $16,000 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: 122,700 in 1st year, 123,000 in 2nd year, 120,500 in 3rd year, 120,800 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.)

1. Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Straight-line depreciation.

image text in transcribed 2. Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Units of production. image text in transcribed

3. Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Double-declining-balance. image text in transcribed

Straight-Line Depreciation Depreciation Expense Year 2 3 4. Total %24 Units of Production Depreciable Units Depreciation Depreciation Expense Year per unit 1 2 3 4 Total %24 DDB Depreciation for the Period End of Period Beginning of Period Book Depreciation Depreciation Rate Accumulated Year Book Value Expense Depreciation Value 1 24 2. 3. 4)

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